COMPETITIVE CONDITIONS IN THE TURKISH BANKING SYSTEMS

Abstract

 In this paper, we investigate competition in the Turkish banking sector over the period 2003– 2012. To understand the competitive conditions in the Turkish banking sector, we use the well-known Panzar-Rosse model based on a nonstructural estimation of the H-statistic by employing the quarterly panel data set. The empirical evidence indicates that the Turkish banking sector operates under conditions of monopolistic competition. Therefore, although there have been growing structural changes in the Turkish banking sector since the 2000s, there has been no remarkable change in the market structure of the Turkish banking sector compared to previous studies, and it can still be characterized by monopolistic competition.

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