ARE GOVERNMENT BANKS LESS COMPETITIVE THAN PRIVATE BANKS? EVIDENCE FROM INDONESIAN BANKING
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1. | Title | Title of document | ARE GOVERNMENT BANKS LESS COMPETITIVE THAN PRIVATE BANKS? EVIDENCE FROM INDONESIAN BANKING |
2. | Creator | Author's name, affiliation, country | Tri Mulyaningsih; Universitas Sebelas Maret; Indonesia |
2. | Creator | Author's name, affiliation, country | Anne Daly; University of Canberra; Australia |
2. | Creator | Author's name, affiliation, country | Phil Lewis; University of Canberra; Australia |
2. | Creator | Author's name, affiliation, country | Riyana Miranti; University of Canberra; Australia |
3. | Subject | Discipline(s) | |
3. | Subject | Keyword(s) | |
4. | Description | Abstract | Literature suggests that compared to private banks, state-owned banks have lower incentives to maximize profit. This study aims to investigate the possible different competitive behaviour of state-owned banks and private banks. The recent refinement of Panzar-Rosse method by Bikker, Shaffer, and Spierdijk (2011) was employed to estimate the competitive behaviour of state-owned and private banks. The empirical estimation of Fixed-Effect approach shows that the H-statistics of the state-owned banks was significantly smaller than of the private banks. It implies that private banks behaved more competitively than the state-owned banks. The private bank market was close to perfect competition or monopolistic competition where bank products are regarded as perfect substitutes for one another. In contrast, state-owned banks attempted to collude rather than to compete to generate a maximum profit. State-owned banks behaved less competitive because they served the interest of government or politician, have a long hierarchical organisational design, receive an interest rate subsidies and an implicit guarantee from government against failure and their business are being controlled by government. Keywords: Bank ownership, competitive behaviour, Panzar-Rosse |
5. | Publisher | Organizing agency, location | MESP–FEB UNS |
6. | Contributor | Sponsor(s) | |
7. | Date | (YYYY-MM-DD) | 2024-07-09 |
8. | Type | Status & genre | Peer-reviewed Article |
8. | Type | Type | |
9. | Format | File format | |
10. | Identifier | Uniform Resource Identifier | https://jurnal.uns.ac.id/jaedc/article/view/89994 |
10. | Identifier | Digital Object Identifier (DOI) | https://doi.org/10.20961/jaedc.v1i1.89994 |
11. | Source | Title; vol., no. (year) | Journal of Applied Economics in Developing Countries; Vol 1, No 1 (2014): Journal of Applied Economics in Developing Countries |
12. | Language | English=en | en |
13. | Relation | Supp. Files | |
14. | Coverage | Geo-spatial location, chronological period, research sample (gender, age, etc.) | |
15. | Rights | Copyright and permissions |
Copyright (c) 2014 Tri Mulyaningsih, Anne Daly, Phil Lewis, Riyana Miranti![]() This work is licensed under a Creative Commons Attribution 4.0 International License. |