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Measuring the Degree of Competition in the Arab Banking Systems

Author

Listed:
  • Awdeh, Ali
  • Salloum, Ahmad
  • El Hokayem, Elie
Abstract
The Arab banking sectors are characterised by high level of concentration, which could have a negative impact on competition and the competitive behaviour of banks according to the Structure-Conduct-Performance paradigm. Using a flexible translog revenue function, we found that high concentration has not provided Arab banks with significant market power. Besides, we found a higher competitive behaviour of banks operating in Lebanon, Bahrain, Saudi Arabia and the UAE than in the other Arab countries.

Suggested Citation

  • Awdeh, Ali & Salloum, Ahmad & El Hokayem, Elie, 2013. "Measuring the Degree of Competition in the Arab Banking Systems," MPRA Paper 119122, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:119122
    as

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    File URL: https://mpra.ub.uni-muenchen.de/119122/1/MPRA_paper_119122.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking; Competition; Panzar-Rosse Model; Market Structure.;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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