Assessing Competition with the Panzar-Rosse Model in the Turkish Banking Sector
Süleyman Açikalin and
Ýlker Sakinç
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Ýlker Sakinç: Hitit University, Turkey
Journal of Economics Bibliography, 2015, vol. 2, issue 1, 18-28
Abstract:
The Turkish banking sector was reformed with new regulations after 2000. The aim of this study is to measure the degree of concentration and assess the state of competition in the Turkish banking sector using data from 22 commercial banks for the period of 2002-2013. The data is analyzed using the pooled Generalized Least Square (PGLS) method. Concentration measures of CR3, CR4 and HHI are used and they show a moderate but slightly decreasing concentration in the sector. The widely accepted Panzar and Rosse (1987) model and its H-statistic are used as a non-structural method to assess the degree of competition. The H-statistic of 0.599 is found for the period of 2002-2013. It indicates a monopolistically competitive market structure for the Turkish banking sector.
Keywords: PanzarRosse Model; Concentration; Competition; Turkish Banking Sector; Pooled Generalized Square Model (search for similar items in EconPapers)
JEL-codes: C23 D43 G21 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:cvv:journ6:v:2:y:2015:i:1:p:18-28
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