Degree of competition in the Vietnam securities industry: An application of the Panzar and Rosse Model
Abstract
In this paper, the Vietnamese securities industry is analyzed between 2008 and 2012 using the Panzar-Rosse model. The H-statistic provided by Panzar and Rosse and E-statistic provided by Shaffer is used. The results reveal that the securities industry is under the long - run equilibrium and its characteristic is monopolistic competition. In addition, the paper reveals that bank-contributed securities firms are more competitive than nonbank-contributed securities firms.
Keywords: Competition, Vietnamese securities industry, Panzar-Rosse model, H-statistic, E-statistic, Monopoly, Monopolistic competition, Perfect competition