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Testing the relationship between competition and efficiency in banking: A panel data analysis

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  • Casu, Barbara
  • Girardone, Claudia

Abstract

The relationship between competition and efficiency in the banking sectors of five EU countries is investigated using Granger-type causality test estimations. We find positive causation between market power and efficiency, whereas the causality running from efficiency to competition is weak.

Suggested Citation

  • Casu, Barbara & Girardone, Claudia, 2009. "Testing the relationship between competition and efficiency in banking: A panel data analysis," Economics Letters, Elsevier, vol. 105(1), pages 134-137, October.
    • Handle: RePEc:eee:ecolet:v:105:y:2009:i:1:p:134-137
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    References listed on IDEAS

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    8. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, September.
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