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Competition and Market Structure of Banking Sector: A Panel Study of Jordan and GCC Countries

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  • Gasaymeh, Anwar Salameh

    (School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 Bangi, Selangor MALAYSIA)

  • Abdul Karim, Zulkefly

    (School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 Bangi, Selangor MALAYSIA)

  • Abdul-Majid, Mariani

    (School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 Bangi, Selangor MALAYSIA)

  • jusoh, mansor

    (School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 Bangi, Selangor MALAYSIA)

Abstract

This paper examines the market structure and competitiveness of the banking industry in Jordan and the GCC countries during the period 2003-2010, using a method proposed by Panzar and Rosse (1987). Using a static and dynamic panel data framework for a sample of 90 commercial banks, the empirical results revealed that banks in Jordan and the GCC countries have generated their revenue under monopolistic competition. This finding indicates that banks in Jordan are able to compete with the banking sector in the GCC countries. Therefore, the Jordanian government should seriously consider joining the GCC group of countries in the future.

Suggested Citation

  • Gasaymeh, Anwar Salameh & Abdul Karim, Zulkefly & Abdul-Majid, Mariani & jusoh, mansor, 2014. "Competition and Market Structure of Banking Sector: A Panel Study of Jordan and GCC Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 48(1), pages 23-34.
    • Handle: RePEc:ukm:jlekon:v:48:y:2014:i:1:p:23-34
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    References listed on IDEAS

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    Cited by:

    1. Mohammed, Nafisah & Muhammad, Junaina & ismail, abdul, 2018. "The Degree of Competition in the Malaysian Dual Banking Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 71-89.
    2. Sunarmo, 2018. "Market Structure And Competition Of Islamic Banking In Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 20(3), pages 307-324, January.

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