Accessing Competition of Financial Industries in China: With the Panzar-Rosse Model

The performance of the financial sector of a country or region affects the growth of the real economy, and the competition of financial industry affects the efficiency of resource allocation. This assay studies the competition degree of bank industry, security industry and insurance industry during the years 2006-2014 with Panzar-Rosse model. The result shows that the financial sector is still in monopolistic competition state in China, and that the degree of the competition of the three financial industries is different. Finally, this paper compares the competition with the market structure of the three industries.