Estimating Market Power in the South African Banking Sector
AbstractIndicators of market power can be ambiguous because cost economies associated with scale and not market imperfections may influence results. This article illustrates that without direct measures of concentration, estimates of costs, scale economies and profitability can be used to identify market power in banking. Secondly, via this method, econometric estimates provide meaningful evidence of market power in the South African banking sector over the study sample period (1979-1998). A reasonable conclusion is that while industrial structure is important, careful consideration needs to be given to cost economies and profitability when assessing market power. In addition, there is a need to consider appropriate policy to reduce market power in banking in South Africa.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal International Review of Applied Economics.
Volume (Year): 21 (2007)
Issue (Month): 5 ()
Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=102219
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Simpasa, Anthony, 2010. "Characterising market power and its determinants in the Zambian banking indudstry," MPRA Paper 27232, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.