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A Comparative Approach of Competitiveness of Iranian Banking Sector

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  • Mohammad Nabi Shahiki Tash
  • Yaghoub Abdi

Abstract

The aim of this paper is present a comparative approach of competitiveness condition in the banking system of Iran by use of two different New Empirical Industrial Organization (NEIO) approaches (Panzar-Rosse and Hall-Roeger models) over the years 2003-2011 for P-R model, and 2007-2011 for other one. The result of calculated H-statistics shows that, the Iranian banking sector’s market structure has a monopolistic situation. In the case of Hall-Roeger model we calculate the Lerner Index for 18 banks, The results for Lerner index show that for 15 banks are P MC and for rest of them is P MC . For comparative purposes the obtained results between the Panzar-Rosse model and Hall- Roeger model, is that it seems that the degree of competition in Hall-Roeger model seems to be intensive than other model. However, these result are similar both of them show that the Iranian banking industry market is non-competitive.

Suggested Citation

  • Mohammad Nabi Shahiki Tash & Yaghoub Abdi, 2013. "A Comparative Approach of Competitiveness of Iranian Banking Sector," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(1), pages 32-37.
    • Handle: RePEc:rss:jnljee:v1i1p4
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    References listed on IDEAS

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    1. Panzar, John C & Rosse, James N, 1987. "Testing for "Monopoly" Equilibrium," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 443-456, June.
    2. Michiel van Leuvensteijn & Jacob Bikker & Adrian van Rixtel & Christoffer Kok Sørensen, 2011. "A new approach to measuring competition in the loan markets of the euro area," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3155-3167.
    3. Rezitis, Anthony N., 2010. "Evaluating the state of competition of the Greek banking industry," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 20(1), pages 68-90, February.
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    Cited by:

    1. Kamran Mahmodpour & Mohammad Shahiki Tash & Mohammad Fotros, 2017. "Assessing Market Structure in Iranian Banking Sector Based on the Multiproduct Approach," Modern Applied Science, Canadian Center of Science and Education, vol. 11(2), pages 1-79, February.

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