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In order to address this question, this paper seeks to take a closer look at the nature and determinants of competition within the EAC banking sector. Our main objective is to empirically estimate the degree of competition in the EAC banking systems. We do this by estimating two nonstructural measures of bank pricing behavior, the Lerner index and the Panzar and Rosse H-statistic. The estimates from these behavioral models enable us to go beyond commonly used indicators of performance and structure, allowing a direct comparison of competitive conditions across countries and an identification of factors that determine competition. The...
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