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

Autor: Mahmodpour Kamran, Shahiki Tash Mohammad N., Fotros Mohammad Hassan
Jazyk: angličtina
Rok vydání: 2018
Předmět:
Zdroj: Scientific Annals of Economics and Business, Vol 65, Iss 4, Pp 459-475 (2018)
Druh dokumentu: article
ISSN: 2501-3165
DOI: 10.2478/saeb-2018-0016
Popis: 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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