The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches

This paper investigates, using a multi-product paradigm, the market structure of the Iranian banking sector to evaluate the role of scale. In so doing, we checked for economies of scope by multi-product cost function as well as the impact of potential economies on the banking sector structure includ...

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Main Authors: Mahmodpour Kamran, Shahiki Tash Mohammad N., Fotros Mohammad Hassan
Format: Article
Language:English
Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2018-12-01
Series:Scientific Annals of Economics and Business
Subjects:
Online Access:http://www.degruyter.com/view/j/saeb.2018.65.issue-4/saeb-2018-0016/saeb-2018-0016.xml?format=INT
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author Mahmodpour Kamran
Shahiki Tash Mohammad N.
Fotros Mohammad Hassan
author_facet Mahmodpour Kamran
Shahiki Tash Mohammad N.
Fotros Mohammad Hassan
author_sort Mahmodpour Kamran
collection DOAJ
description This paper investigates, using a multi-product paradigm, the market structure of the Iranian banking sector to evaluate the role of scale. In so doing, we checked for economies of scope by multi-product cost function as well as the impact of potential economies on the banking sector structure including 18 banks during the period 2008–2014. The changes in Panzar-Rosse H-Statistic as a result of the variety in products reflect changes in the monopolistic power. The results show that an increase in the variety of offered products increases banks’ monopolistic power.
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spelling doaj.art-239fcc72b33449c5b3a32653941064182022-12-21T18:51:20ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652018-12-0165445947510.2478/saeb-2018-0016saeb-2018-0016The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect ApproachesMahmodpour Kamran0Shahiki Tash Mohammad N.1Fotros Mohammad Hassan2Department of Economics, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, IranFaculty of Management and Economics, University of Sistan and Baluchestan, IranBu-Ali Sina University, Hamedan, IranThis paper investigates, using a multi-product paradigm, the market structure of the Iranian banking sector to evaluate the role of scale. In so doing, we checked for economies of scope by multi-product cost function as well as the impact of potential economies on the banking sector structure including 18 banks during the period 2008–2014. The changes in Panzar-Rosse H-Statistic as a result of the variety in products reflect changes in the monopolistic power. The results show that an increase in the variety of offered products increases banks’ monopolistic power.http://www.degruyter.com/view/j/saeb.2018.65.issue-4/saeb-2018-0016/saeb-2018-0016.xml?format=INTIranian banking sectorvariety-based economiesmulti-level modelmarket structurethe generalized Panzar-Rosse modelL1G21F36
spellingShingle Mahmodpour Kamran
Shahiki Tash Mohammad N.
Fotros Mohammad Hassan
The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches
Scientific Annals of Economics and Business
Iranian banking sector
variety-based economies
multi-level model
market structure
the generalized Panzar-Rosse model
L1
G21
F36
title The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches
title_full The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches
title_fullStr The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches
title_full_unstemmed The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches
title_short The Effect of Economies of Scope on Iranian Banking Sector Structure: An Application of Multi-Product Function and Multi-Level Effect Approaches
title_sort effect of economies of scope on iranian banking sector structure an application of multi product function and multi level effect approaches
topic Iranian banking sector
variety-based economies
multi-level model
market structure
the generalized Panzar-Rosse model
L1
G21
F36
url http://www.degruyter.com/view/j/saeb.2018.65.issue-4/saeb-2018-0016/saeb-2018-0016.xml?format=INT
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