JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Competition and Efficiency of National Banks in the United Arab Emirates
Author(s): Lawrence S. Tai
Citation: Lawrence S. Tai, (2012) "Competition and Efficiency of National Banks in the United Arab Emirates," Journal of Applied Business and Economics, Vol. 13, Iss. 5, pp. 76-86
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper examined the degree of competition and efficiency of publicly listed national banks in the
United Arab Emirates (UAE) between 2003 and 2011. We calculated the Lerner Index to measure the
degree of monopoly power for each bank in the loan market. In addition, we used a translog cost function
to evaluate the efficiency of the UAE banking sector. Finally, we tested the causality between competition
and efficiency and determined the direction of causality.