University of Tehran Iranian Economic Review 1026-6542 19 1 2015 01 01 Competition In Iran’s Banking Sector: Panzar-Rosse Approach 29 39 55158 10.22059/ier.2015.55158 EN Farhad Khodadad Kashi Economics Department, Payame Noor University, 19395-4697, Tehran, Iran Jamal Zarein M. A. in Economics, Ministry of Education, Payame Noor University, Tehran, Iran Yeghaneh Mosavi Department of Economics, Payame Noor University, 19395-4697, Tehran, Iran Journal Article 2015 02 21 The Iranian banking sector has undergone huge and substantial reform in the last decade; privatization, establishment of private banks and development of modern technologies (IT). This paper investigates the competitive condition of the Iranian banking industry over the period 2005-2010 using the H-statistic proposed by Panzar and Rosse. The properties of this non-structural methodology make it an excellent framework for assessing the degree of competition in the banking industry. To calculate H statistics, a reduced form of revenue equation was estimated. The calculated H statistics for the whole sample period was 0.7101.The extent of H statistics and the result of wald test indicate that the structure of Iranian Banking sector is neither monopoly nor competition. Our findings were in favor of monopolistic competition. https://ier.ut.ac.ir/article_55158_21f2614c9f37509d152855bad4148813.pdf