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Measurement of Competitiveness Degree in Tunisian Deposit Banks: An Application of the Panzar and Rosse Model

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  • Sami Mensi

    ()
    (Department of Economics, High School of Business of Tunis (ESCT), University of Manouba & PS2D Laboratory, Tunis)

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    Abstract

    This paper explores the use of the Panzar-Rosse statistic as a basis for empirical assessment of competitive conditions among Tunisian deposit banks. The elaborated model has been tested with an interest revenues equation and a total revenues equation. Proceeding by means of an Ordinary Least Square analysis, the H-statistics is respectively estimated at 0.87 and 0.91. The computations undertaken using bank fixed effects and bank random effects General Least Square methods yield similar results. With reference to the reviewed literature, we are inclined to believe that Tunisian banks implement neither a joint monopoly nor a collusive competition context, and that they evolve within an oligopolistic competition context in a contestable market. Thus, it confirms the presence of a competitive environment.

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    Bibliographic Info

    Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

    Volume (Year): 57 (2010)
    Issue (Month): 2 (June)
    Pages: 189-207

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    Handle: RePEc:voj:journl:v:57:y:2010:i:2:p:189-207

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    Web page: http://www.panoeconomicus.rs/

    Related research

    Keywords: Tunisia; Banking competition; Contestability; Panzar-Rosse statistic; Panel data.;

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    References

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    Cited by:
    1. Willem Karel M. Brauers & Romualdas Ginevičius & Askoldas Podviezko, 2014. "Development of a Methodology of Evaluation of Financial Stability of Commercial Banks," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(3), pages 349-367, June.
    2. Iveta Repková & Daniel Stavárek, 2014. "Concentration and Competition in the Banking Sector of Turkey," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(36), pages 625, May.

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