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Exploring competitiveness in banking sector of a small island economy: a study of Fiji

Kumar, Ronald R. and Patel, Arvind (2014) Exploring competitiveness in banking sector of a small island economy: a study of Fiji. Quality and Quantity: International Journal of Methodology, 48 (6). pp. 3169-3183. ISSN 0033-5177

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    Abstract

    The paper explores the competitiveness in the banking sector in Fiji using the Panzar and Rosse (J Ind Econ 35:443–456, 1987) method. We compute the concentration ratios and Herfindahl–Hirschman index based on total assets, loans, and deposits to examine the concentration level. To compute the Panzar-Rosse H-statistics, we use fixed effect regression method duly controlling for heterogeneity. The results show banks in Fiji exhibit monopolistic behavior and are biased towards monopoly/conjectural variation short-run oligopoly upon examining the significance level of the upper and lower bounds of the computed H-statistics. Moreover, the results also show that banks revenue are influenced positively by interest expenses, capital adequacy ratio, and the number of branches; and negatively by personnel expenses, other operating expenses, and firm size measured by total assets.

    Item Type: Journal Article
    Subjects: H Social Sciences > HA Statistics
    H Social Sciences > HD Industries. Land use. Labor
    H Social Sciences > HG Finance
    Divisions: Faculty of Business and Economics (FBE) > School of Accounting and Finance
    Depositing User: Ronald Kumar
    Date Deposited: 07 Oct 2014 11:08
    Last Modified: 10 May 2016 12:16
    URI: http://repository.usp.ac.fj/id/eprint/7653
    UNSPECIFIED

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