Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83923
Authors: 
al- Muharrami, Saeed
Matthews, Kent
Khabari, Yusuf
Year of Publication: 
2006
Series/Report no.: 
Cardiff Economics Working Papers E2006/8
Abstract: 
This paper investigates the market structure of Arab GCC banking industry during the years of 1993 to 2002 using the most frequently applied measures of concentration kbank concentration ratio (CRk) and Herfindahl-Hirschman Index (HHI) and evaluates the monopoly power of banks over the ten years period using the “H statistic” by Panzar and Rosse. The results show that Kuwait, Saudi Arabia and UAE have moderately concentrated markets and are moving to less concentrated positions. The measures of concentration also show that Qatar, Bahrain and Oman are highly concentrated markets. The Panzar-Rosse H-statistics suggest that banks in Kuwait, Saudi Arabia and the UAE operate under perfect competition; banks in Bahrain and Qatar operate under conditions of monopolistic competition; and we are unable to reject monopolistic competition for the banking market in Oman.
Subjects: 
GCC countries
Concentration
Market structure
Competition
Panzar-Rosse model
k-bank concentration ratio (CRk)
Herfindahl-Hirschman Index (HHI)
JEL: 
G21
L1
D40
Document Type: 
Working Paper

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