Market-power versus cost-efficiency in Thailand's banking sector in the post-crisis period (1998–2011)

Itthipong Mahathanaseth () and Loren W. Tauer

Journal of Asian Economics, 2012, vol. 23, issue 5, 499-506

Abstract: The degree of competition and effect of market concentration on interest rate margins in the banking sector of Thailand are estimated using the new empirical industrial organization model. We find that the collusive behavior and the market power of banks intensified during 2005–2011, after the East Asian financial crisis. Although the estimated benefit of scale economies resulting from increased concentration is statistically insignificant, its estimated impact would offset the unfavorable effect of higher market-power associated with higher concentration.

Keywords: Thailand; Bank competition; Bank concentration; Bank efficiency; New industrial organization model (search for similar items in EconPapers)
JEL-codes: D40 G21 L13 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:23:y:2012:i:5:p:499-506

DOI: 10.1016/j.asieco.2012.06.002

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