scholarly journals Market Structure and Competition of Islamic Banking in Indonesia

2018 ◽  
Vol 20 (3) ◽  
pp. 307-324
Author(s):  
. Sunarmo
Keyword(s):  
Panel Data ◽  
Market Structure ◽  
Monopolistic Competition ◽  
Islamic Banking ◽  
Long Run ◽  
Long Run Equilibrium

The aim of this study is to investigate the market structure and competition of Islamic Banking with H-statistics (Panzar and Roose) model using panel data over a period of July 2010 to September 2014. The result of H-statistics test for long-run equilibrium showed disequilibrium condition. It means that Islamic banking in developing stage. While the market structure and competition test confirmed that the value of the degree of H-statistics generally in monopolistic competition market with score 0.53 to 1.06.

scholarly journals On Marshallian theory of demand and short-run equilibrium

2020 ◽  
Author(s):  
William Icefield
Keyword(s):  
Monopolistic Competition ◽  
Effective Demand ◽  
Market Clearing ◽  
Demand Shocks ◽  
Long Run ◽  
Short Run ◽  
Independent Variable ◽  
Demand Effects ◽  
Long Run Equilibrium

Mainstream neoclassical models lack genuine demand effects satisfying the principle of effective demand even with monopolistic competition, without addition of so-called frictions, such as inflexible price. There can only be demand shocks. Price is considered to be an independent variable, instead of quantity. But as Alfred Marshall original envisioned, we can instead think of quantity as an independent variable, along with associated equilibrium convergence via quantity adjustments. This allows us to consider a short-run market-clearing equilibrium with less demand than a long-run equilibrium, in contrast to mainstream models without frictions and shocks, with validation of the principle of effective demand.

scholarly journals The nexus of tourism spending with economic performance: A panel data analysis for the Eurozone area

2021 ◽  
Vol 25 (1) ◽  
pp. 53-62
Author(s):  
Ageliki Anagnostou ◽  
George Ekonomou ◽  
Dimitris Kallioras
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Economic Performance ◽  
Panel Data Analysis ◽  
Centrifugal Forces ◽  
Economic Space ◽  
Analysis Techniques ◽  
Long Run ◽  
The Relationship ◽  
Long Run Equilibrium

The paper investigates the nexus of tourism spending (i.e. leisure and business tourism spending) with economic performance (i.e. GDP and employment) for the Eurozone countries, during the period 2000-2018, employing sophisticated panel data analysis techniques. The issue is salient, given that within the Eurozone economic space the abolition of border impediments has released dynamics and brought into surface a new mix of opportunities, threats and challenges that has been changing the balance between centripetal and centrifugal forces. The findings of the paper identify the long-run equilibrium and confirm the bi-directional relationships among the variables considered, thus contributing to the discussion on the relationship between tourism and economic performance.

scholarly journals The Degree of Competition in the UAE Banking Industry

2017 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
George Owusu Antwi ◽  
Rachna Banerjee ◽  
Amal Abeer Mohammed ◽  
Mariam Juma Muna-Habib
Keyword(s):  
Market Structure ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Balance Sheet ◽  
Competitive Environment ◽  
Input Price ◽  
Financial Products ◽  
Long Run ◽  
Banking Market

This paper has made an attempt to assess the degree of competition (or market structure) in the UAE banking sector using the H-statistics established by Panzar-Rosse (1987). Data of six years (2009-2015) have been extracted from various balance sheet and income statements of the banks. Pooled OSL estimator was used to obtain the coefficient. The inputs prices were found to be significant except the input price of labor. Total asset was registered to be positively significant. All other variables were not significant. The results of the study reveal that the UAE banking market structure is characterized by the monopolistic competition. That is, banks earned their revenue as if operating under conditions of monopolistic competition during this period. A robust check was performed to test for validity of PR-model. The results yield E-statistic which is consistent with long-run equilibrium. It is believed that both the small and the larger banks operate relatively equal more in a competitive environment. We recommend that UAE should develop new financial products and services that will provide convenience to customers while improving profitability.

scholarly journals Analysis of Islamic Banking Market Structure in Indonesia with Panzar-Rosse Model Approach

2019 ◽  
Vol 2 (2) ◽  
pp. 122-133
Author(s):  
Kiki Hardiansyah Siregar ◽  
Ahmad Qarib ◽  
Dede Ruslan
Keyword(s):  
Panel Data ◽  
Market Structure ◽  
Banking Industry ◽  
Secondary Data ◽  
Islamic Banking ◽  
Analysis Model ◽  
Banking Market ◽  
Monopoly Market ◽  
Equilibrium Test

The purpose in this study is to determine and analyze the market structure of the Islamic banking industry in Indonesia according to the Panzar-Rosse model and the level of competition between Islamic banking industry in Indonesia. To find out the market structure of the islamic banking industry it must be analyzed the effect of EAR, NPF, BOPO, FAR, FS, PL, PFF, PCE on the performance of Islamic banking as measured by ROA. The data used to answer and achieve these objectives is used secondary data from Islamic banks in Indonesia which has the largest asset ratings for a period of 6 years using the selected panel data method on the basis of Tests. The analysis model related to market structure uses the Panzar-Rosse model by looking for the H-statistic value and identified the Islamic banking equilibrium test on the panel data model of the performance of bank  in Indonesia. This study found that the performance of Islamic banking measured by ROA simultaneously affected EAR, NPF, BOPO, FAR and FS and Panzar-Rosse approach will produce H-Stat value which is the sum of three main coefficients ofbanking inputs (labor, capital and funds). With H-Stat valued at 0.735 can be concludedthat the islamic banking industry in indonesia into the category of monopolistic market.The levels of the Islamic banking industry of Bank BNI, Bank BRI, Bank Panin and Bank Bukopin are monopolistic market while Bank Muamalat and Bank Mandiri are directed towards a joint monopoly market in the position of long-term equilibrium.

scholarly journals THE STATE OF COMPETITION OF THE TURKISH BANKING INDUSTRY: AN APPLICATION OF THE PANZAR‐ROSSE MODEL

2010 ◽  
Vol 11 (1) ◽  
pp. 131-145
Author(s):  
Bora Aktan ◽  
Omar Masood
Keyword(s):  
Equilibrium State ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
The State ◽  
Competitive Markets ◽  
Long Run ◽  
Competitive Nature ◽  
Long Run Equilibrium

This paper examines the competitive structures of the Turkish banking industry over the period 1998–2008 and investigates the factors that can explain differences in the degree of competitiveness. The Panzar‐Rosse method is used to test for the competitive nature of the industry, which also gives the measure of competition, the H‐statistic, is related to a number of industry controls and prevailing banking structures. Our results indicate that the banking industry in Turkey is in an equilibrium state, further they are in long run equilibrium. We also found that the banks in Turkey are operating as a whole under conditions of monopolistic competition. However, the banks were able to achieve high records of profitability in monopolistically competitive markets. Santrauka Straipsnyje tyrinejamos konkuruojančios struktūros ir veiksniai, darantys itaka skirtingam rinkos žai‐deju konkurencingumo laipsniui Turkijos bankininkystes sektoriuje 1998–2008 m. Bankininkystes sek‐toriaus konkurencijai ivertinti taikomas Panzar‐Rosse metodas. Rezultatai leidžia teigti, kad bankininkystes sektorius Turkijoje yra pusiausvyros būsenos, pereinančios i ilgalaiki etapa. Taip pat nustatyta, kad bankai Turkijoje veikia monopolines konkurencijos salygomis. Šiomis salygomis Turkijos bankai sugeba pasiekti aukštapelninguma.

Competition and market structure of the Malaysian Islamic banking industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Faizal Basri
Keyword(s):  
Market Structure ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Financial System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Under Performing ◽  
Conventional Banks ◽  
The Impact

Purpose This paper aims to investigate the impact of competition in the Malaysian Islamic banking industry and the market structure of the industry by focusing on the particular impact created by the entrance of fully fledged foreign Islamic banks plus the introduction of Islamic subsidiaries of existing conventional banks in the country (domestic and foreign ownership). Design/methodology/approach Using a sample of 16 Islamic banks in the country that operated between 2008 and 2015, this paper measures the competition among the Islamic banks using the Panzar-Rosse Model and by looking at the market structure of the industry using the k-bank concentration ratio and the Herfindahl-Hirschman Index. Findings The study found that between 2008 and 2015, the Malaysian Islamic banking industry operated in monopolistic competition conditions with a moderately concentrated market structure. The introduction of foreign Islamic banks caused the market structure to become more competitive and less concentrated by comparing the results that include foreign Islamic banks against the results generated with a subsample of domestic Islamic banks only. Bank Negara Malaysia’s (BNM’s) financial reform and the liberalisation of the financial system were proven to induce competition making the financial system more resilient, competitive and dynamic. The Islamic banks have recorded consistently increased annual performance with the under-performing Islamic banks catching up on the top performers. Originality/value Very few research studies have focused on the market structure and competition of the Islamic banking industry in Malaysia, especially using recent financial data; this study will contribute to filling the existing gap.

Modeling Sustained Educational Change With Panel Data: The Case for Dynamic Multiplier Analysis

2002 ◽  
Vol 27 (2) ◽  
pp. 85-103 ◽  
Author(s):  
David Kaplan
Keyword(s):  
Panel Data ◽  
Educational Change ◽  
Linear Models ◽  
Exogenous Variable ◽  
Endogenous Variable ◽  
Multiplier Analysis ◽  
Long Run ◽  
Unit Increase ◽  
Indefinite Future ◽  
Long Run Equilibrium

This article considers the problem of modeling sustained educational change via the use of dynamic multipliers applied to panel data. Dynamic multipliers arise from the incorporation of lagged endogenous variables in linear models. Three types of dynamic multipliers can be defined: (a) the impact multiplier, (b) interim multipliers, and (c) the long-run equilibrium multiplier. An impact multiplier gives the effect of a unit increase in an exogenous variable on an endogenous variable in the particular sample period. An interim multiplier gives the effect of a unit increase in an exogenous variable on an endogenous variable when that effect is sustained for a specified amount of time. A long-run equilibrium multiplier gives the effect of a unit increase in an exogenous variable on an endogenous variable when sustained into the indefinite future. This article seeks to develop and advocate dynamic multiplier analysis for education research. Extensions to multivariate dynamic linear models and multilevel linear models are provided. Three examples are presented to illustrate the methodology. The article closes with a discussion of the implications of dynamic multiplier analysis for education policy analysis.

scholarly journals THE STATE OF COMPETITION OF THE TURKISH BANKING INDUSTRY: AN APPLICATION OF THE PANZAR‐ROSSE MODEL

2010 ◽  
Vol 11 (1) ◽  
pp. 131-145 ◽  
Author(s):  
Bora Aktan ◽  
Omar Masood
Keyword(s):  
Equilibrium State ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
The State ◽  
Competitive Markets ◽  
Long Run ◽  
Competitive Nature ◽  
Long Run Equilibrium

This paper examines the competitive structures of the Turkish banking industry over the period 1998–2008 and investigates the factors that can explain differences in the degree of competitiveness. The Panzar‐Rosse method is used to test for the competitive nature of the industry, which also gives the measure of competition, the H‐statistic, is related to a number of industry controls and prevailing banking structures. Our results indicate that the banking industry in Turkey is in an equilibrium state, further they are in long run equilibrium. We also found that the banks in Turkey are operating as a whole under conditions of monopolistic competition. However, the banks were able to achieve high records of profitability in monopolistically competitive markets. Santrauka Straipsnyje tyrinejamos konkuruojančios struktūros ir veiksniai, darantys itaka skirtingam rinkos žai‐deju konkurencingumo laipsniui Turkijos bankininkystes sektoriuje 1998–2008 m. Bankininkystes sek‐toriaus konkurencijai ivertinti taikomas Panzar‐Rosse metodas. Rezultatai leidžia teigti, kad bankininkystes sektorius Turkijoje yra pusiausvyros būsenos, pereinančios i ilgalaiki etapa. Taip pat nustatyta, kad bankai Turkijoje veikia monopolines konkurencijos salygomis. Šiomis salygomis Turkijos bankai sugeba pasiekti aukštapelninguma.

scholarly journals Competition Conditions in Taiwan’s Public Accounting Industry

2016 ◽  
Vol 6 (1) ◽  
pp. 43
Author(s):  
Bao-Guang Chang ◽  
Tai-Hsin Huang ◽  
Hsiu-Mei Wang
Keyword(s):  
Monopolistic Competition ◽  
Market Competition ◽  
Stochastic Frontier ◽  
Perfect Competition ◽  
Public Accounting ◽  
The Public ◽  
Audit Market ◽  
Natural Logarithm ◽  
Long Run ◽  
Long Run Equilibrium

This paper investigates the degree of market competition in the public accounting industry of Taiwan over the period 1994-2008, using the ‘H statistic’ proposed by Panzar & Rosse (1987). Differing from previous works, this paper applies a newly developed model, i.e., the censored stochastic frontier (CSF) model, to test whether the audit market has achieved its long-run equilibrium. The model is superior to the conventional model that requires researchers adding a unity to the dependent variable of returns on assets (ROA) for all observations, forcing the transformed dependent variable to be non-negative. One can then take the natural logarithm of this dependent variable. Evidence shows that Taiwan’s accounting industry is characterized as monopolistic competition with a trend towards perfect competition. The result will help to build up the empirical model for public accounting industry. The CSF model confirms that this industry is already in a long-run equilibrium in the second half of the sample, which validates the use of the Panzar-Rosse model. Conversely, the employment of the conventional approach leads to a rejection of the long-run equilibrium over the entire sample period. 

scholarly journals Intra-banking competition in Ecuador: new evidence using panel data approach

2020 ◽  
Vol 25 (50) ◽  
pp. 295-319 ◽  
Author(s):  
Javier Solano ◽  
Segundo Camino-Mogro ◽  
Grace Armijos-Bravo
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Ordinary Least Squares ◽  
Banking Competition ◽  
Content Type ◽  
Long Run ◽  
Competitive Behaviour ◽  
Private Banking

Purpose Banks are institutions that inject money in the economy and help to boost it when there are problems in some markets, especially in productive sectors. In this way, analysing the competition in this sector is an important tool for policymakers as non-competitive behaviour could affect the financial system and economy. The purpose of this paper is to measure the degree of competition in the Ecuadorian private banking sector divided by size, from 2000 to 2015, using panel data collected by the official regulator institution. Design/methodology/approach The authors applied the model proposed by Panzar and Rosse (1987) and its H-statistic using a reduced price and revenue equation estimated by pooled ordinary least squares, fixed effects, random effects, feasible generalised fixed effects and panel correction standard errors (PCSE). Findings The authors show that given the presence of some problems in data such as heteroskedasticity and autocorrelation, the most appropriate technique is PCSE. The authors also found robust evidence supporting that large banks compete in a monopolistic market, small and medium-sized banks operate in monopolistic competition, and Ecuadorian small, medium-sized and large banks stay in long-run equilibrium. Originality/value This paper contributes to the actual literature of competition degree in two ways. First, different from traditional papers, we do not control by size; so, we divided the analysis by size, because in Ecuador and also in many developing countries, bank’s competition is different for each group of size because the levels of liquidity, risk and other indicators are different from one group to another. Second, we show the robustness of the results using a scaled and unscaled equation, using many controls and using five methods to contrast the competition degree.

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