Industrial concentration and competition in Indonesian manufacturing
type: CreativeWork
description: This thesis examines the interrelationship between market structures, firm rivalry, and government intervention in the Indonesian manufacturing sector over the period 1975 to 1995. Two empirical methodologies are used in this study. First, the Structure. Conduct - Performance (S-C-P) approach to industrial organisation provides the basic framework for our analysis in the first part of the study. The second research methodology is indus•ry case studies. Two industry studies presented in this study are cigarettes and cement. The study begins with an overview of the evolution of Indonesian trade and industrial policies and the salient features of the manufacturing sector. An analysis of the trends in seller concentration over the period 1975 to 1993 is also provided. The descriptive analysis on seller concentration shows that there is a long-term declining trend in industrial concentration, particularly in those industries that were highly concentrated in the mid-1970s. This provides the backdrop into subsequent statistical analysis of the interrelationship between concentration and other aspects of structure and performance. For this purpose, we specify and estimate a simultaneous equations model of industry structure, conduct and performance. The interrelationships among six key variables (concentration, profitability, foreign ownership, export intensity, import penetration and trade policy) are estimated for two different policy periods; (1) pre-1986 period of heavy trade and industry policy intervention, and (2) post-1986 period of trade and industry liberalisation. A number of interesting findings emerged from the analysis. Trade protection, interacted with seller concentration, was a major determinant of high profitability in concentrated industries in the pre-liberalisation period. This relationship significantly weakened as a result of the late 1980s trade liberalisation. High concentration had a positive influence on effective trade protection, providing some …
abstract: This thesis examines the interrelationship between market structures, firm rivalry, and government intervention in the Indonesian manufacturing sector over the period 1975 to 1995. Two empirical methodologies are used in this study. First, the Structure. Conduct - Performance (S-C-P) approach to industrial organisation provides the basic framework for our analysis in the first part of the study. The second research methodology is indus•ry case studies. Two industry studies presented in this study are cigarettes and cement. The study begins with an overview of the evolution of Indonesian trade and industrial policies and the salient features of the manufacturing sector. An analysis of the trends in seller concentration over the period 1975 to 1993 is also provided. The descriptive analysis on seller concentration shows that there is a long-term declining trend in industrial concentration, particularly in those industries that were highly concentrated in the mid-1970s. This provides the backdrop into subsequent statistical analysis of the interrelationship between concentration and other aspects of structure and performance. For this purpose, we specify and estimate a simultaneous equations model of industry structure, conduct and performance. The interrelationships among six key variables (concentration, profitability, foreign ownership, export intensity, import penetration and trade policy) are estimated for two different policy periods; (1) pre-1986 period of heavy trade and industry policy intervention, and (2) post-1986 period of trade and industry liberalisation. A number of interesting findings emerged from the analysis. Trade protection, interacted with seller concentration, was a major determinant of high profitability in concentrated industries in the pre-liberalisation period. This relationship significantly weakened as a result of the late 1980s trade liberalisation. High concentration had a positive influence on effective trade protection, providing some …
author: Bird, Kelly
language: en
date published: 1999
date modified: 2026-07-24T01:07:45Z
provider: Australian Catholic University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Australian Catholic University

PropertyValue
property ID: Handle
value: http://hdl.handle.net/1885/109588