Estimation of Three Indexes of Economic Concentration: An Application to Banking Sector in Nicaragua

Authors

  • Oliver David Morales Rivas Economista
  • Ricardo José Canales Universidad Nacional Autónoma de Nicaragua Managua

DOI:

https://doi.org/10.5377/reice.v4i7.2830

Keywords:

Economic concentration, banks, index Herfindahl-Hirschman Index warhead and dominance index

Abstract

This article presents three indicators to estimate the degree of economic concentration in the banking sector in Nicaragua. Using annual data for the period 2007 to 2015 of the Central Bank of Nicaragua. The calculated indicators are the Herfindahl-Hirschman Index (in later HHI), warhead index (in later OJV) and dominance index (hereinafter ID). These indices are calculated for assets, credits and total deposits of private national banks, so they will have three values for each index of concentration: one in relation to the accounts of assets, loans and finally deposits. It is concluded that the banking sector in Nicaragua is highly concentrated, accounts for assets, deposits and credits. The IHH, OJV indices and ID, presented a growing trajectory in the future at the level of concentration of this industry in Nicaragua.

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Author Biography

Ricardo José Canales, Universidad Nacional Autónoma de Nicaragua Managua

docente del departamento de ecnomia

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Published

2016-09-12

How to Cite

Morales Rivas, O. D., & Canales, R. J. (2016). Estimation of Three Indexes of Economic Concentration: An Application to Banking Sector in Nicaragua. Revista Electrónica De Investigación En Ciencias Económicas, 4(7), 177–188. https://doi.org/10.5377/reice.v4i7.2830

Issue

Vol. 4 No. 7 (2016): January-June

Section

Research Articles

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