•  
  •  
 

Abstract

Positive correlation between concentration and profitability is not always a result of collusion. Market concentration can be a proxy for efficiency and product differentiation that have done by company. The company that can be mentioned efficient and have done product differentiation can improve market share, and industry that consist of the company has tendency to be concentrated.

This research tries to prove whether market share and concentration in Islamic and conventional banking industry as proxy to efficient. If it is proven, so there is no relationship between market share and concentration with profitability. It is appropriate with efficient structure hypothesis.

Using pool data for Islamic and conventional banking industry at period January 2002 until November 2005. Model that had been used in this research is adjusted Smirlock model with fixed effect method from this research, is hoped that Islamic banking industry can support efficient structure hypothesis, moreover conventional banking industry can support differentiation hypothesis.

References

Baltagi, Badi H. "Econometric Analysis of Panel Data, 2nd edition". John Wiley and Sons Ltd, England. 2003.

Bank Syariah Mandiri, laporan tahunan 2004. "Lima Tahun Melayani dan Mengukir Prestasi". 2005.

Berger, Allen N. The Profit structure relationship in banking- Test of market power and efficient market hypothesis.

Berger, Allen N. and Timothy H. Hannan. "The Price-Concentration Relationship in Banking''. The Review of Economic and Statistic. May 1989.

Berger, Allen N and Timothy H. Hanan. "The Efficiency Cost of Markel Power in Banking Industry: A Test of the "Quite Life" and Related Hypothesis". The Review of Economics and Statistics. Volume 80. No. 3 Agustus 1998.

Casu, Barbara. "Bank Competition, Concentration and Efficiency in the Single European market".

Comanor, W.S. and T. Wilson. "Advertising, Market Structure, and Performance". Review of Economics and Statistics, 49. November 1967.

Church, Jeffrey and Roger Ware. "Industrial Organization, A Strategic Approach". McGraw-Hill. 2000.

Demzets, H. "Industry Structure, Market Rivalry, and Public Policy". Journal of Law and Economics, 16(April 1973), hlm. 1-9.

Ferguson, Paul R. "Industrial Economics: Issues and Perspectives. Macmillan Education, 1988.

Fraser, Donald Rand Peter S. Rose. "Bank Entry and Bank Performance". Journal of Finance, Vol 27. March 1972.

Gilbert, Alton R. "Bank Market Structure and Competition: A Survey". Journal of Money, Credit and Banking. November. 1984.

Graddy, Duanne B and Reuben Kyle. "The Simultaneity of Bank Decision Making, Market Structure and Bank Performance". Journal of Finance. March. 1979.

Greer, Douglas F. "Industrial Organization and Public Policy: Third edition". Maxwell Macmillan. 1992.

Gujarati, Damodar N. 1995. Basic Econometrics, 3rd Ed. McGraw-Hill.

Hall, M. and L. Weiss, "Firm Size and Profitability". Review of Economics and Statistics, 49(August 1967), hlm. 319-331.

Hannan, Timothy H. "Foundations of the Structure-Conduct-Performance Paradigm in Banking. Journal of Money, Credit and Banking. Februari 1991.

Heggested, Arnold A. and John J. Mingo. "Prices, Nonprices, and Concentration in Commercial Banking". Journal of Money, Credit and Banking. February 1976.

Heggested, Arnold A. "Market Structure, Risk and Profitability in Commercial Banking'. Journal of Finance 32. September 1977.

Hicks, J.R. " Annual Survey of Economic Theory: The Theory of Monopoly". Econometrica, Volume 3 No. 1, January 1935. hal. 8.

Hunt, H.G. "Industrial Economics". Pergamon Press. London. 1965.

Kane, Edward J. "Economic Statistics & Econometrics, An Introduction to Quantitative Economics". A Harper International Edition. Boston College. 1968.

Koch, J.V. "Industrial Organization and Prices". Prentice hall. 1980.

Laporan Perkembangan Perbankan Syariah Tahun 2004, Direktorat Perbankan Syariah, Bank Indonesia.

Marthin, Stephen. "Industrial Economics: Economic Analysis and Public Policy". Macmillan, New York. 1988.

Mishkin, Frederick S & Stanley G Eakins "Financial Market Institutions 4th Ed. Addison Wesley. 2000.

Modul Workshop on Islamic Banking yang diadakan FSI SMF EUI. 2003.

Modul International Conference on Islamic Economics and Finance. Jakarta, 21-24 November 2005. Volume 1 dan 2.

Neuberger, Doris. "Structure, Conduct and Performance in Banking Markets". 1997.

Nurzaman, dan Rido Arifin, "Analisis Industri Perbankan Syariah di Indonesia Pendekatan Teori Organisasi Industri dan Teori Lokasi Industri", Mini Economica, edisi 34, tahun 2004.

Reder, Melvin W. "Chicago Economic: Performance and Change". Journal of Economic Literature Volume 20. Number 1. March 1982, p. 12.

Rosmanita, Fenny. "Analisa Simultan Struktur Perilaku dan Kinerja (SCP) lndustri Rokok Indonesia 1990-2002. Depok, 2005. Skripsi FEUI, Unpublished.

Schwartzman, "Effect of Monopoly on Price", Journal of Political Economy 67(August 1959), hlm. 352-362.

Schmid, Frank A. " Bank vs. Credit Unions: Dynamic Competition in Local Markets". Working Paper. Federal Reserve Bank of St. Louis. August. 2002.

Sheperd, William G. "The Economics of Industrial Organization". Prentice Hall.

Sheperd, W. G. "The Element of Market Structure" Review of Economics and Statistics, 54. februari 1972.

Siamat, Dahlan. 2001. Manajemen Lembaga Keuangan. Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia

Smith, Adam. "An Inquiry into the Nature and The Causes of the Wealth of Nations", 1937

Smirlock Michael. "Evidence of the (Non) Relationship between Concentration and Bank Profitability". Journal of Money, Credit and Banking. Februari 1985.

Stigler, "Capital and Rates of Return in Manufacturing Industries" (Princeton, N.J.: Princeton University Press, 1963).

Strickland, A. D. and L. W. Weiss. " Advertising, Concentrations and Price-Cost Margin". The Journal of lndustrial Economics, 2 (December 1975).

Susseno dan Peter Abdullah. "Sistem dan Kebijakan Perbankan di Indonesia". Seri Kebanksentralan No. 7. Pusat Pendidikan dan Studi Kebanksentralan. Bank Indonesia. 2003

Syariaf Syahrial, "Pengolahan Data Panel (Pooled Data)", Laboratorium Komputasi, Departemen llmu Ekonomi FEUI. Depok

Waldman, Don E. and Elizabeth J. Jensen. "Industrial Organization: Theory and Practice". Addison Wesley. 2001.

Weiss, Leonard W. "The Concentration-Profits Relationship and Antitrust".

Waldman dan Elizabeth J. Jonsen. "Industrial Organization: Theory and Practices". Addison Wesley.

Download

Included in

Economics Commons

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.