Competitive Conditions in the Jamaican Banking Market 1998-2009
AbstractThis paper presents an empirical assessment of the degree of competition within the Jamaican banking sector during the period 1998 to 2009. We employ a dynamic version of the Panzar-Rosse Model to estimate market power among the sample of banks that constitute over 90 percent of the banking market. Using the conventional statistical tests, we are unable to reject monopoly/perfect collusion for the merchant banking sector in Jamaica but find competitive conditions in the commercial banking sector. This contrasts with earlier findings using alternative estimators that find monopolistic competition in the market as a whole.
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Bibliographic InfoPaper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2011/28.
Length: 18 pages
Date of creation: Nov 2011
Date of revision:
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Web page: http://business.cardiff.ac.uk/research/academic-sections/economics/working-papers
More information through EDIRC
Competition; banking; Rosse-Panzar H statistic; dynamic panel estimation; Jamaica;
Other versions of this item:
- Daley, Jenifer & Matthews, Kent, 2012. "Competitive conditions in the Jamaican banking market 1998–2009," International Review of Financial Analysis, Elsevier, vol. 25(C), pages 131-135.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-BAN-2011-11-21 (Banking)
- NEP-COM-2011-11-21 (Industrial Competition)
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