The Evolution of Bank Competition: Have Conditions Changed in the Jordanian Banking Sector?

Abstract

The primary aim of this paper is to measure competitiveness in the Jordanian banking sector. In addition, this paper examines the competitive dynamics in this sector. Based on panel data analysis and the time period 2000-2014, the estimation results indicate that Jordanian banks operate under monopolistic conditions and this has not changed during the period of the study. Naturally, the findings of this paper have a number of implications. This is based on the literature which argues that bank competition influences, for example, real economic growth, manufacturing productivity growth, and the lending channel of banks.