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Market structure in the banking sector: evidence from a developing economy

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    Abstract

    This paper examines the market structure of VietnamÔÇÖs banking system from 1999 to 2009 using the non-structural (Panzar-Rosse) model. We consider a more comprehensive range of specifications, in terms of a greater number of environmental covariates and different dependent variables, than in previous applications of this model. Further, this is the first study that uses lagged input prices (to avoid endogeneity) and excludes assets (to avoid specification bias) in such a study of the Vietnamese banking system. We find that the Vietnamese banking system operates in monopolistic competition with non-state owned commercial banks behaving more competitively than state owned commercial banks.
    Original languageEnglish
    Place of PublicationKingston upon Thames, U.K.
    PublisherFaculty of Arts and Social Sciences, Kingston University
    Number of pages23
    Publication statusPublished - 2013

    Publication series

    NameEconomics Discussion Paper
    PublisherFaculty of Arts and Social Sciences, Kingston University
    No.2013/01

    Keywords

    • Economics and econometrics
    • Vietnam
    • banking
    • non-structural model
    • performance

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