Another study is done in very close neighbor country of Georgia, Armenia, Mkrtchyan (2005) reviewed the
structure of the Armenian banking industry using data the year 1998-2002 and employing the tests developed by
Panzar and Rosse (1987). He linked the issues of competition and concentration to test the validity of either the
marker-power or efficiency hypothesis in Armenian banking. He found that Armenian banking system can be
characterized as monopolistically competitive, thus supporting the market power hypothesis.