 The Behavior of the Post-Crises Indonesian Banking Industry (An Analysis Based on Oligopoly Theory and Dynamic Panel Data Econometrics)Moch. Doddy Ariefianto ()
Economics and Finance in Indonesia, 2010, vol. 58, 269-284 Abstract: This article focuses on the behavior of Indonesian banking industry, especially after the 1998 Asian Financial Crisis. The analytical approach and hypotheses construction employ the well- known oligopoly theory of Cournot and Stackleberg. This approach for banking was first introduced by Monti (1971) and Klein (1972), which was subsequently developed by Toolsema and Schoonbeck (1999) and Yamazaki and Miyamoto (2004). This study expands the model further through introducing market leadership and the existence of the inter-bank money market. A panel data set composed of 30 banks with a monthly frequency spanning from January 2002 to December 2008 is constructed in order to verify the hypotheses. An econometric method of Dynamic Panel Data (DPD) is employed, since the model is characterized by endogeneity. The estimation and inference therein show that Indonesian Banking behavior is of the Stackleberg-Bertrand variant. Banks suspected to dominate the industry are Bank Mandiri, BCA and Citibank Keywords: Oligopoly Theory; Market Leadership; Dynamic Panel Data; Endogeneity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:201013 Access Statistics for this article More articles in Economics and Finance in Indonesia from Faculty of Economics and Business, University of Indonesia Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.