Market power versus efficient-structure in Arab GCC banking

Saeed Al-Muharrami; Kent Matthews

doi:10.1080/09603100902845478

Market power versus efficient-structure in Arab GCC banking

Saeed Al-Muharrami, Kent Matthews

Research output: Journal Publication › Article › peer-review

44 Citations (Scopus)

Abstract

This article evaluates the performance of the Arab Gulf Cooperation Council (GCC) banking industry in the context of the Structure-Conduct-Performance (SCP) hypothesis in the period 1993 to 2002. This article uses panel estimation differentiating between bank fixed effects and country fixed effects. It examines the Relative-Market-Power (RMP) and the Efficient-Structure (ES) hypotheses differentiating between the two by employing a nonparametric measure of technical efficiency, and finds that the banking industry in the Arab GCC countries is best explained by the mainstream SCP hypothesis. The empirical results do not find any support for the Hicks' (1935) 'Quiet Life' (QL) version of the market power hypothesis.

Original language	English
Pages (from-to)	1487-1496
Number of pages	10
Journal	Applied Financial Economics
Volume	19
Issue number	18
DOIs	https://doi.org/10.1080/09603100902845478
Publication status	Published - Sept 2009
Externally published	Yes

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1080/09603100902845478

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Market power versus efficient-structure in Arab GCC banking

Abstract

ASJC Scopus subject areas

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