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The Effects of Entry Regulation on Bank Competition: The Case of the Iranian Banking Industry

Khiabani, Nasser, Hamidi Sahneh, Mehdi (2019) The Effects of Entry Regulation on Bank Competition: The Case of the Iranian Banking Industry. The Effects of Entry Regulation on Bank Competition: The Case of the Iranian Banking Industry, 15 (1). pp. 119-137. ISSN 1514-0326. E-ISSN 1667-6726. (doi:10.1016/S1514-0326(12)60006-3) (KAR id:75775)

Abstract

We focus on a modified version of the markup test to investigate the impact of entry regulation on competitive conditions in the Iranian banking industry for the period 1996-2006. The

time interval under examination corresponds to an era characterized by substantial relaxation of entry barriers and private bank penetration. To estimate Lerner indexes as a measure of

bank competition, we set up a simultaneous equation model for unbalanced panel data by utilizing the stepwise maximum likelihood method. We find that concomitantly with the new

bank entries a pro-competitive change in the banking industry took place.

Item Type: Article
DOI/Identification number: 10.1016/S1514-0326(12)60006-3
Uncontrolled keywords: bank competition, Lerner index, entry regulation, unbalanced panel
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD29 Operational Research - Applications
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Mehdi Hamidi Sahneh
Date Deposited: 12 Aug 2019 16:59 UTC
Last Modified: 16 Feb 2021 14:06 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/75775 (The current URI for this page, for reference purposes)

University of Kent Author Information

Hamidi Sahneh, Mehdi.

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