TY - JOUR
T1 - New evidence on assessing the level of competition in the European Union banking sector: A panel data approach
AU - Apergis, Nicholas
AU - Fafaliou, Irene
AU - Polemis, Michael
PY - 2016/2
Y1 - 2016/2
N2 - The goal of this paper is to empirically assess the level of banking competition in the European Union (EU) across three economic blocks (i.e. EU-27, EMU-17 and the remaining EU countries). Furthermore, the paper assesses the impact of the on-going financial crisis (2008–2011) on the competition pattern of the banking sector in the European Monetary Union (EMU) as a whole, where little attention has been paid by the relevant literature. The analysis employs the Panzar and Rosse ((1987). Journal of Industrial Economics, 35, 443) methodology and draws upon a panel dataset of EU banks, spanning the period 1996–2011. The empirical findings are robust, providing updated evidence in favour of a monopolistic competition pattern across all EU economic blocks examined. The level of competition in the EMU countries triggered by bank consolidations seems to have undergone a small, albeit a significant decline, after the adoption of the euro currency and the on-going financial crisis.
AB - The goal of this paper is to empirically assess the level of banking competition in the European Union (EU) across three economic blocks (i.e. EU-27, EMU-17 and the remaining EU countries). Furthermore, the paper assesses the impact of the on-going financial crisis (2008–2011) on the competition pattern of the banking sector in the European Monetary Union (EMU) as a whole, where little attention has been paid by the relevant literature. The analysis employs the Panzar and Rosse ((1987). Journal of Industrial Economics, 35, 443) methodology and draws upon a panel dataset of EU banks, spanning the period 1996–2011. The empirical findings are robust, providing updated evidence in favour of a monopolistic competition pattern across all EU economic blocks examined. The level of competition in the EMU countries triggered by bank consolidations seems to have undergone a small, albeit a significant decline, after the adoption of the euro currency and the on-going financial crisis.
KW - Banking
KW - Monopolistic competition
KW - Panel data
KW - Panzar-Rosse index
KW - Financial crisis
U2 - 10.1016/j.ibusrev.2015.07.003
DO - 10.1016/j.ibusrev.2015.07.003
M3 - Article
SN - 0969-5931
VL - 25
SP - 395
EP - 407
JO - International Business Review
JF - International Business Review
IS - 1
ER -