Dear Mia

I think that the HHI is the best proxy for market concenstration. In other aspect, you might want to look the 5-firms concenstration index

Second, you may want to recheck your data agian, since you use one index for all the companies so that the change in this index may not impact on the interest rates as well. I suggest you use the market share of each firms to replace it

Best

Canh

Dear Nguyen Canh,

Thank you very much for your valuable comments and suggestions.I also estimated CR4, CR8 and CR20. But i believe your second suggestion is quite appropriate as i have thought of it as well. However, i am looking for an evidence or papers that used such proxy. I would appreciate if you come across any paper related to this and share with me.

Thanks in advance.

Dear Friend

You might want to look some papers belowed

http://www.sciencedirect.com/science/article/pii/S1517758015000028

and that one

http://www.sciencedirect.com/science/article/pii/S1059056016000113

Cheers

Canh

Dear Aslam,

Very interesting topic that you are studying. Unfortunately, in the Indian Micro-finance market today, rates are tightly regulated, so the rates across MFIs are not much different. Broadly from my experience in India I see that concentration does not lead to higher rates, but adding hidden costs as compulsory add-ons and some manipulations. A study of add-ons to credit, and compulsory additional products & services to be taken & foreclosure charges, are some aspects to be studied.

Dear Emmanuel,

Thank you very much for your valuable inputs. I shall look further and incorporate your suggestions in my studies.

 Dear Canh,

Thank you very much for sharing the article. It is indeed very helpful for me.

Cheers!

Dear Mia

Cheers

Canh