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Competitive Conditions in the Jamaican Banking Market 1998-2009

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This paper presents an empirical assessment of the degree of competition within the Jamaican banking sector during the period 1998 to 2009. We employ a dynamic version of the Panzar-Rosse Model to estimate market power among the sample of banks that constitute over 90 percent of the banking market. Using the conventional statistical tests, we are unable to reject monopoly/perfect collusion for the merchant banking sector in Jamaica but find competitive conditions in the commercial banking sector. This contrasts with earlier findings using alternative estimators that find monopolistic competition in the market as a whole.

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  • Daley, Jenifer & Matthews, Kent, 2011. "Competitive Conditions in the Jamaican Banking Market 1998-2009," Cardiff Economics Working Papers E2011/28, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2011/28
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    Cited by:

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    2. Matousek, Roman & Nguyen, Thao Ngoc & Chris, Stewart, 2016. "Performance of the banking sector of a developing country: A non-structural model using the disequilibrium approach," Economics Discussion Papers 2016-2, School of Economics, Kingston University London.
    3. Guidi, Francesco, 2021. "Concentration, competition and financial stability in the South-East Europe banking context," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 639-670.
    4. Abdul Latif Alhassan & Nicholas Biekpe, 2017. "Liberalization Outcomes and Competitive Behaviour in an Emerging Insurance Market," African Development Review, African Development Bank, vol. 29(2), pages 122-138, June.
    5. Anwar Hossain Repon & K.M Zahidul Islam, 2016. "Competition and Concentration in Bangladeshi Banking Sector: An Application of Panzar-Rosse Model," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(1), pages 14-29, January.
    6. Zhang, Tiantian & Matthews, Kent, 2019. "Assessing the degree of financial integration in ASEAN—A perspective of banking competitiveness," Research in International Business and Finance, Elsevier, vol. 47(C), pages 487-500.
    7. Iveta Repková & Daniel Stavárek, 2014. "Concentration and Competition in the Banking Sector of Turkey," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(36), pages 625-625, May.

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    More about this item

    Keywords

    Competition; banking; Rosse-Panzar H statistic; dynamic panel estimation; Jamaica;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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