Managing the endogeneity problem of the market structure: a study on banking competition
Recent literature suggests that the market structure is an endogenous variable that is determined by a firm’s behaviour and the competitive environment of the industry. This study examines the relation between the market structure and the banks’ behaviour in Indonesian banking by considering the en...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2015-10-01
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| Series: | Economic Journal of Emerging Markets |
| Subjects: | |
| Online Access: | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/4284 |
| _version_ | 1798001107259097088 |
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| author | Tri Mulyaningsih Anne Daly Riyana Miranti |
| author_facet | Tri Mulyaningsih Anne Daly Riyana Miranti |
| author_sort | Tri Mulyaningsih |
| collection | DOAJ |
| description |
Recent literature suggests that the market structure is an endogenous variable that is determined by a firm’s behaviour and the competitive environment of the industry. This study examines the relation between the market structure and the banks’ behaviour in Indonesian banking by considering the endogeneity problem of them as variables. The estimations using the Vector-Error-Correction approach suggest that the structural approach provides a valid prediction of the relationship between market structure and bank behaviour by recognizing the endogeneity issue between those two variables. The banking industry would be more competitive if the market was less concentrated.
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| first_indexed | 2024-04-11T11:30:51Z |
| format | Article |
| id | doaj.art-ec649a8f808e498e89f019a31f03c778 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-11T11:30:51Z |
| publishDate | 2015-10-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-ec649a8f808e498e89f019a31f03c7782022-12-22T04:26:10ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2015-10-0172Managing the endogeneity problem of the market structure: a study on banking competitionTri Mulyaningsih0Anne Daly1Riyana Miranti2Faculty of Economic and Business, Sebelas Maret Surakarta University, SurakartaFaculty of Business, Government and Law, University of CanberraNational Centre for Social and Economic Modelling, University of Canberra Recent literature suggests that the market structure is an endogenous variable that is determined by a firm’s behaviour and the competitive environment of the industry. This study examines the relation between the market structure and the banks’ behaviour in Indonesian banking by considering the endogeneity problem of them as variables. The estimations using the Vector-Error-Correction approach suggest that the structural approach provides a valid prediction of the relationship between market structure and bank behaviour by recognizing the endogeneity issue between those two variables. The banking industry would be more competitive if the market was less concentrated. http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/4284market structureendogeneitybankingindustryVECM |
| spellingShingle | Tri Mulyaningsih Anne Daly Riyana Miranti Managing the endogeneity problem of the market structure: a study on banking competition Economic Journal of Emerging Markets market structure endogeneity banking industry VECM |
| title | Managing the endogeneity problem of the market structure: a study on banking competition |
| title_full | Managing the endogeneity problem of the market structure: a study on banking competition |
| title_fullStr | Managing the endogeneity problem of the market structure: a study on banking competition |
| title_full_unstemmed | Managing the endogeneity problem of the market structure: a study on banking competition |
| title_short | Managing the endogeneity problem of the market structure: a study on banking competition |
| title_sort | managing the endogeneity problem of the market structure a study on banking competition |
| topic | market structure endogeneity banking industry VECM |
| url | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/4284 |
| work_keys_str_mv | AT trimulyaningsih managingtheendogeneityproblemofthemarketstructureastudyonbankingcompetition AT annedaly managingtheendogeneityproblemofthemarketstructureastudyonbankingcompetition AT riyanamiranti managingtheendogeneityproblemofthemarketstructureastudyonbankingcompetition |