HHI INDEX CONCENTRATION RATIO FOR PANEL DATA

[carlton durrant]

Any assistance on the HHI index for Panel model thesis


Can any one tell me how to use the HHI index to compute concentration index for entities located in different islands . My panel consists of 37 credit unions but located in different market/ island countries in the caribbean. The MSc thesis focuses on the determinants of performance of 37 credit unions in the Eastern Caribbean for the period 2009 to 2018 which consist of 7 island in the grouping. Each island is a market where the credit union is located. can the hhi index be computed based on island market for credit union in that market or can the hhi be computed for the subregion taking the whole seven islands in region as the entire market. Please see below the a sample of the data with the list of credit unions in the different islands. I am uncertain about this.

I want to add HHI as an explanatory variable since my data is not a normal distribution since the sector is highly concentrated as 6 credit unions control nearly 50% of total assets of the subregion. There are also problems with heterocedascity , autocorrelation and cross sectional dependence hence I plan to use robust panel estimation like PCSE to assist.

Please see below my current model:
ROAit= β0 + β1CATETAit+ β2LOGSIZETAit+ β3LIQLNDit+ +β4LEVTLTAit+ β5MENIETAit+ β6MENIETI+ β7MESCNIE it+ β8NIMTA +β9 AQLNTA it + β10GDPGit +εit Where:

ROAit= log of return on asset for entity i in year t
CATETAit= log of Capital adequacy for entity i in year t
LOGSIZETAit= log of Total assets used as a proxy for size for entity i in year t
LIQLNDit = Total loan/deposits as proxy for Liquidity for entity i in year t
LEVTLTAit = Total liabilities/ Total assets as proxy for Leverage for entity i in year t
MENIETAit = Non- interest expense/ total assets as proxy for Management efficiency for entity i in year t
MENIETIit = Non- interest expense/ total income as proxy for Management efficiency for entity i in year
MESCNIEit= staff expense/ total non interest expense as proxy for Management efficiency for entity i in year
NIMTA= Net interest income / Total assets as proxy for efficiency in earnings ability
AQLNTA= total loans/ total assets as proxy for Asset quality for entity I in year t
GDPit== real GDP growth for entity i in year t


country id Name of credit union
St Vincent VC General Employees Cooperative Credit Union
St Vincent VC Kingstown Cooperative Credit Union
St Vincent VC Teachers Cooperative Credit Union
St Vincent VC Police Cooperative Credit Union
Grenada GD Grenada Public Service Cooperative Credit Union Ltd/ Ariza
Grenada GD Communal Cooperative Credit Union Ltd
Grenada GD Grenada Union of Teachers Cooperative Credit Union Ltd
Grenada GD Grenville Cooperative Credit Union Ltd
Grenada GD River Sallee Cooperative Credit Union Ltd
Grenada GD Birchgrove Cooperative Credit Union Ltd
Grenada GD Hermitage Cooperative Credit Union Ltd
Grenada GD Geo. F. Huggins Employees Cooperative Credit Union Ltd
Grenada GD Gateway Cooperative Credit Union Ltd
St. Lucia LC Choiseul Credit Union
St. Lucia LC Dennery Co-op Credit Union
St. Lucia LC Elk’s Co-operative Credit Union
St. Lucia LC Fond St. Jacques Credit Union
St. Lucia LC Hospitality Co-op Credit Union
St. Lucia LC Laborie Credit Union
St. Lucia LC Mon Repos Credit Union
St. Lucia LC National Farmers Credit Union
St. Lucia LC Mabouya Valley Credit Union
St. Lucia LC Royal St Lucia Police Credit Union
St. Lucia LC Saltibus Credit Union
St. Lucia LC St Lucia Civil Service Credit Union
St. Lucia LC St Lucia Teachers’ Credit Union
St. Lucia LC St Lucia Workers Credit Union
St. Lucia LC West Coast Credit Union
Dominica DM West Coast Credit Union
Dominica DM National Co-operative Credit Union Limited
Dominica DM Central Co-operative Credit Union Ltd
Dominica DM Marigot Credit Union
Dominica DM Grand Bay credit union
Antigua AG Antigua and Barbuda Police Co-operative Credit Union Ltd.
Antigua AG St. John’s Co-operative Credit Union Ltd.
Antigua AG Antigua Public Utilities Authority Credit Union Ltd
Antigua AG Community First Co-operative Credit Union Ltd.
St Kitts Nevis KN Nevis Co-operative Credit Union Ltd
St Kitts Nevis KN St Kitts Co-operative Credit Union Ltd
St Kitts Nevis KN Police Co-operative Credit Union (St Christopher and Nevis) Ltd
St Kitts Nevis KN FND Enterprise Co-operative Credit Union Ltd
Montserratt MS St Patrick’s Co-operative Credit Union Limited

see sample total income of credit union in two islands
Island ID Name of CU YEAR total revenue
St Vincent GESV GECCU 2009 10,354,327
St Vincent GESV GECCU 2010 10,398,687
St Vincent GESV GECCU 2011 12,138,542
St Vincent GESV GECCU 2012 11,270,081
St Vincent GESV GECCU 2013 11,174,077
St Vincent GESV GECCU 2014 11,797,644
St Vincent GESV GECCU 2015 12,428,461
St Vincent GESV GECCU 2016 13,578,058
St Vincent GESV GECCU 2017 15,236,572
St Vincent GESV GECCU 2018 16,442,983
St Vincent KCSV Kccu 2009 4,515,787
St Vincent KCSV Kccu 2010 4,709,019
St Vincent KCSV Kccu 2011 5,081,558
St Vincent KCSV Kccu 2012 5,342,034
St Vincent KCSV Kccu 2013 5,323,653
St Vincent KCSV Kccu 2014 5,763,040
St Vincent KCSV Kccu 2015 6,412,253
St Vincent KCSV Kccu 2016 6,606,917
St Vincent KCSV Kccu 2017 7,013,308
St Vincent KCSV Kccu 2018 7,391,305
St Vincent TCSV SVGTCU 2009 5,178,180
St Vincent TCSV SVGTCU 2010 5,216,085
St Vincent TCSV SVGTCU 2011 5,333,753
St Vincent TCSV SVGTCU 2012 5,396,052
St Vincent TCSV SVGTCU 2013 5,616,913
St Vincent TCSV SVGTCU 2014 5,846,930
St Vincent TCSV SVGTCU 2015 6,810,108
St Vincent TCSV SVGTCU 2016 7,183,775
St Vincent TCSV SVGTCU 2017 7,545,126
St Vincent TCSV SVGTCU 2018 9,205,414
St Vincent PCSV SVG PCCU 2009 286,009
St Vincent PCSV SVG PCCU 2010 382,514
St Vincent PCSV SVG PCCU 2011 454,727
St Vincent PCSV SVG PCCU 2012 607,614
St Vincent PCSV SVG PCCU 2013 663,910
St Vincent PCSV SVG PCCU 2014 687,116
St Vincent PCSV SVG PCCU 2015 710,456
St Vincent PCSV SVG PCCU 2016 846,676
St Vincent PCSV SVG PCCU 2017 1,079,862
St Vincent PCSV SVG PCCU 2018 1,434,858
Grenada GPGD GPSCCU Ariza 2009 11,894,902
Grenada GPGD GPSCCU Ariza 2010 13,448,983
Grenada GPGD GPSCCU Ariza 2011 14,062,508
Grenada GPGD GPSCCU Ariza 2012 14,547,743
Grenada GPGD GPSCCU Ariza 2013 16,210,155
Grenada GPGD GPSCCU Ariza 2014 17,345,520
Grenada GPGD GPSCCU Ariza 2015 18,930,271
Grenada GPGD GPSCCU Ariza 2016 19,693,875
Grenada GPGD GPSCCU Ariza 2017 21,859,227
Grenada GPGD GPSCCU Ariza 2018 27,051,677
Grenada COGD Communal CU 2009 5,356,189
Grenada COGD Communal CU 2010 5,537,834
Grenada COGD Communal CU 2011 5,369,707
Grenada COGD Communal CU 2012 5,694,543
Grenada COGD Communal CU 2013 6,021,751
Grenada COGD Communal CU 2014 7,062,515
Grenada COGD Communal CU 2015 8,243,113
Grenada COGD Communal CU 2016 9,561,870
Grenada COGD Communal CU 2017 11,214,605
Grenada COGD Communal CU 2018 12,420,015
Grenada TCGD GUTCU Ltd 2009 6,515,695
Grenada TCGD GUTCU Ltd 2010 5,397,403
Grenada TCGD GUTCU Ltd 2011 6,422,996
Grenada TCGD GUTCU Ltd 2012 8,436,670
Grenada TCGD GUTCU Ltd 2013 7,883,065
Grenada TCGD GUTCU Ltd 2014 8,454,066
Grenada TCGD GUTCU Ltd 2015 9,309,879
Grenada TCGD GUTCU Ltd 2016 11,306,681
Grenada TCGD GUTCU Ltd 2017 12,234,225
Grenada TCGD GUTCU Ltd 2018 12,885,833
Grenada GRGD Grenville CU 2009 2,702,722
Grenada GRGD Grenville CU 2010 2,437,583
Grenada GRGD Grenville CU 2011 2,721,197
Grenada GRGD Grenville CU 2012 2,990,566
Grenada GRGD Grenville CU 2013 2,991,927
Grenada GRGD Grenville CU 2014 3,173,221
Grenada GRGD Grenville CU 2015 4,303,848
Grenada GRGD Grenville CU 2016 5,386,710
Grenada GRGD Grenville CU 2017 6,570,723
Grenada GRGD Grenville CU 2018 6,175,084

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