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Competitive Conditions of the Tunisian Banking Industry: An Application of the Panzar– R osse Model
Author(s) -
Abdelkader Ines Ben,
Mansouri Faysal
Publication year - 2013
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/1467-8268.12047
Subject(s) - monopoly , liberalization , economics , statistic , banking industry , market power , monetary economics , financial system , market economy , mathematics , statistics
Abstract This study employs the Panzar–Rosse H ‐statistic to assess the competitive conditions of the Tunisian banking industry over the period 1999 to 2003. The results show that the banking market is in long‐run equilibrium and the Panzar–Rosse H ‐statistic indicates that the Tunisian banking market is operating under conditions of monopoly. It seems therefore that the liberalization process and the reforms implemented since 1987 to the banking sector could not compensate, for the period under study, the existence of market power in this sector.