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Volume :16 Issue : 2 2009      Add To Cart                                                                    Download

Competition in the Kuwaiti Banking Sector

Auther : Abdullah Kh. Al-Mutairi
Husain A. Al-Omar

This paper investigates the degree of competition in the Kuwaiti banking sector, using both the Herfindahl-Hirschman Index (HHI) and Panzar and Rosse (PR) approach. A pooled annual data for seven commercial banks covering the period from 1993 to 2005 was used to estimate a six variables model by seemingly unrelated regression technique. The results indicate that the sector is highly concentrated according to HHI, and operate under monopolistic competition according to the PR approach. These results are in line with the empirical findings in other countries.

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