Competition in the Kuwaiti Banking Sector

Authors

  • Abdullah Kh. Al-Mutairi Public Authority for Applied Education and Training image/svg+xml
  • Husain A. Al-Omar Public Authority for Applied Education and Training image/svg+xml

DOI:

https://doi.org/10.34120/ajas.v16i2.725

Keywords:

Competition, The structureal approach, The Non-Structural Approach, Structure Conduct Performance, The Efficient Structure Hypothesis, Contestable Markets theory, Herfindahl Hirschman Index, Panzar and Rosse model

Abstract

This paper investigates the degree of competition in the Kuwaiti banking sector, using both the Herfindahl- Hirschman Index (HHI) and Panzar and Rosse (PR) approach. A pooled annual data for seven commercial banks covering the period from 1993 to 2005 was used to estimate a six variables model by seemingly unrelated regression technique. The results indicate that the sector is highly concentrated according to HHI, and operate under monopolistic competition according to the PR approach. These results are in line with the empirical findings in other countries.

Downloads

Download data is not yet available.

Author Biographies

Abdullah Kh. Al-Mutairi, Public Authority for Applied Education and Training

Ph.D. in Finance and Investment, Cardiff University, UK, 2004. Lecturer in Finance at the College of Business Studies, PAAET. His area of interest includes Market Efficiency, Capital Structure, Bank Performance, Valuation of Securities and Investor Behavior.

Husain A. Al-Omar, Public Authority for Applied Education and Training

Ph.D. in Economics, Miami University, USA, 1990. Associate Professor in Economics. College of Business Studies, PAAET. His area of interest includes the Economics of Emerging Markets, Public Finance, Fiscal Policy Monetary Sector Economics and the Behaviour of Macroeconomic Variables.

Downloads

Published

2009

How to Cite

Al-Mutairi, A. K., & Al-Omar, H. A. (2009). Competition in the Kuwaiti Banking Sector. Arab Journal of Administrative Sciences, 16(2), 323–334. https://doi.org/10.34120/ajas.v16i2.725

Issue

Vol. 16 No. 2 (2009)

Section

Finance