IDEAS home Printed from https://ideas.repec.org/p/bth/wpaper/2010-01.html
   My bibliography  Save this paper

Measuring the Level of Competition in the Loan Market of the Thai Banking Industry Using the Boone Indicator

Author

Listed:
  • Rungporn Roengpitya

    (Bank of Thailand)

Abstract

This paper follows the pioneer effort in measuring the competition level in the loan markets among selected countries in the European Union by van Leuvensteijn et al. (2007). In this study, the competition level in the loan market of the Thai banking industry is calculated both in aggregate of time and by year, from 1994-2004. In addition, for comparison purposes, I also re-assess the level of competition in the loan market of the U.S. banks, using the data from the CALL Report during the years 1994-2004, which is different from the original paper that uses the Bankscope data from 1999- 2004. The results indicate that the Thai banking industry is much less competitive when compared to the U.S. banking industry and bears higher marginal costs, which consequently translates to lower efficiency. Finally, it is worth noting that the method of estimating the translog cost function diverges from the EU paper in a sense that the states’ fixed effects are included in this study and that the marginal cost equation is estimated differently due to the use of a different marginal cost equation.

Suggested Citation

  • Rungporn Roengpitya, 2010. "Measuring the Level of Competition in the Loan Market of the Thai Banking Industry Using the Boone Indicator," Working Papers 2010-01, Monetary Policy Group, Bank of Thailand.
  • Handle: RePEc:bth:wpaper:2010-01
    as

    Download full text from publisher

    File URL: http://www.bot.or.th/Thai/EconomicConditions/Publication/DiscussionPaper/dp012010_eng.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    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. Stijn Claessens & Luc Laeven, 2004. "What drives bank competition? Some international evidence," Proceedings, Federal Reserve Bank of Cleveland, pages 563-592.
    3. Jan Boone, 2008. "A New Way to Measure Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1245-1261, August.
    4. Boone, Jan, 2000. "Competition," CEPR Discussion Papers 2636, C.E.P.R. Discussion Papers.
    5. Boone, J. & van Ours, J.C. & van der Wiel, H.P., 2007. "How (Not) to Measure Competition," Discussion Paper 2007-32, Tilburg University, Center for Economic Research.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pariyada Sukcharoensin, 2013. "Time-Varying Market, Interest Rate and Exchange Rate Risks of Thai Commercial Banks," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 9(1), pages 25-45.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bth:wpaper:2010-01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pornpinun Chantapacdepong). General contact details of provider: http://edirc.repec.org/data/botgvth.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.