Market Power versus Efficient-Structure in Arab GCC Banking
AbstractThis paper evaluates the performance of the Arab GCC banking industry in the context of the Structure-Conduct-Performance hypothesis in the period 1993-2002. The paper uses panel estimation differentiating between bank fixed effects and country fixed effects. It examines the Relative-Market-Power and the Efficient-Structure hypotheses differentiating between the two by employing a non-parametric measure of technical efficiency, and finds that the banking industry in the Arab GCC countries is best explained by the mainstream SCP hypothesis. The empirical results do not find any support for the Hicks (1935) "Quiet Life" version of the market power hypothesis.
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Bibliographic InfoPaper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2009/7.
Length: 21 pages
Date of creation: Jun 2009
Date of revision:
Publication status: Published in Applied Financial Economics , Volume 19 Issue 18, September 2009, pp. 1487-1496.
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Web page: http://business.cardiff.ac.uk/research/academic-sections/economics/working-papers
More information through EDIRC
GCC Banking; Structure Conduct Performance;
Other versions of this item:
- Saeed Al-Muharrami & Kent Matthews, 2009. "Market power versus efficient-structure in Arab GCC banking," Applied Financial Economics, Taylor & Francis Journals, vol. 19(18), pages 1487-1496.
- G2 - Financial Economics - - Financial Institutions and Services
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-ARA-2009-06-03 (MENA - Middle East & North Africa)
- NEP-BAN-2009-06-03 (Banking)
- NEP-COM-2009-06-03 (Industrial Competition)
- NEP-EFF-2009-06-03 (Efficiency & Productivity)
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