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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)

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.

Suggested Citation

  • Sami Mensi, 2010. "Measurement of Competitiveness Degree in Tunisian Deposit Banks: An Application of the Panzar and Rosse Model," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(2), pages 189-207, June.
  • Handle: RePEc:voj:journl:v:57:y:2010:i:2:p:189-207
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    Citations

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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. repec:voj:journl:v:63:y:2016:i:5:p:525-540 is not listed on IDEAS
    3. Widede Labidi & Sami Mensi, 2015. "Does Banking Market Power Matter on Financial (In)Stability? Evidence from the Banking Industry MENA Region," Working Papers 908, Economic Research Forum, revised May 2015.
    4. Ronald Kumar & Arvind Patel, 2014. "Exploring competitiveness in banking sector of a small island economy: a study of Fiji," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3169-3183, November.
    5. Sinha, Pankaj & Sharma, Sakshi & Ghosh, Sayan, 2015. "An empirical analysis of competition in the Indian Banking Sector in dynamic panel framework," MPRA Paper 68556, University Library of Munich, Germany, revised 28 Dec 2015.
    6. 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 625-625, May.

    More about this item

    Keywords

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

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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