Evaluation of banking competition in Morocco: implementation of Panzar and Rosse model Online publication date: Fri, 09-Oct-2015
by Filali Adib Fatine; Firano Zakaria; Afifa Hakam
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 8, No. 3, 2015
Abstract: This paper assesses the degree of competition in the Moroccan banking sector with the approach of Panzar and Rosse (1987). Thus, a revenue function of the reduced form was estimated using panel data on a sample of five Moroccan banks that hold more than 80% of the credit market. The results confirm empirically that the Moroccan banking sector is not competitive (by price or/and by quantity), is characterised by monopolistic competition which factors are specific to bank behaviour. Furthermore, analysis of the dynamics of the index of Panzar and Rosse between 1993 and 2010 made a claim stabilisation of competitive level, varying between 0.37 and 0.28, which suggests that banks in the presence strategies lead to agreements that reduce competition in the banking sector in Morocco.
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