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Competition in the Turkish banking industry

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This study employs the Panzar-Rosse H -statistic to assess the competitive environment of the Turkish banking industry over the period 1990 to 2000. The results indicate that for the period under consideration bank revenues behaved as if they were earned under conditions of monopolistic competition. Therefore, the observed high profitability of the Turkish banking sector does not seem to be an indication of an increase in monopoly power. The liberalization process and deregulation measures appear to have beneficial effects on competition.
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Document Type: Research Article

Affiliations: Department of Economics, Hacettepe University, Beytepe 06532, Ankara, Turkey

Publication date: 2006-06-20

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