Using the Panzar and Rosse theory of competition to test whether the grouping

criterion chosen works. Next, Individuate some groups of banks which are likely to
face more or less competition. Then, build up a dummy and test whether some basic
relationships are diferent for the group of firms. Finally, use panel data regression to
test for the degree of competition of the group of firms selected. After completing
the above steps, I will use regression analysis model to determine whether there is a
relationship between the number of banks, concentration and competition.
Overall, the essay measures the competitiveness of banks in some China, Japan and
Korea, and use regression analysis to determine whether there is a necessary
relationship between the competitiveness and the number of banks.