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Market Structure and Competition in Emerging Market: Evidence from Malaysian Islamic Banking Industry

  • Abdul Majid, Muhamed Zulkhibri
  • Sufian, Fadzlan

This paper investigates the market structure of Islamic banking industry in Malaysia during 2001-2005 and evaluates the degree of competition using the H-statistic by Panzar and Rosse (1987). The estimated H-statistics for the whole sample periods are positive ranging from 0.38 to 0.62 and the Wald test for the market structure of monopoly or perfect competition is rejected implying that the Islamic banks in Malaysia earned their revenue in the condition of monopolistic competition.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12126.

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Date of creation: 01 Jun 2007
Date of revision: 01 Jul 2007
Publication status: Published in Journal of Economic Cooperation 28.2(2007): pp. 99-121
Handle: RePEc:pra:mprapa:12126
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