Abstract
Keywords: industrial concentration, price rigidity, technical efficiency, price-cost margin, Structure-Conduct-Performance (SCP), new empirical industrial organization (NEIO), Indonesian food and beverages industry, Data Envelopment Analysis (DEA), system of equations
The Indonesian food and beverages industry contributes significantly to the Indonesian GDP and is an important provider of employment. However, this industry is characterized by high industrial concentration which may affect pricing and performance. The objective of this thesis is to examine market structure, price rigidity, and performance as well as their relationship in the Indonesian food and beverages industry. To investigate the relationship between market structure, price rigidity, and performance, this research uses two main frameworks: Structure-Conduct-Performance (SCP) and new empirical industrial organization (NEIO).
This thesis uses firm-level (establishment) data of 59 subsectors of the food and beverages industry sourced from the manufacturing survey of the Bureau of Central Statistics (BPS) over the period 1995-2006. Econometric methods and Data Envelopment Analysis (DEA) are used to address the overall objective.
Empirical results show that industrial concentration converges to the same value across subsectors in the long run. Seven years after the introduction of the competition law in 1999, industrial concentration and price-cost margin are still high. Industrial concentration has a positive effect on the price-cost margin. Besides stopping the upward trend of the price-cost margin, the introduction of the 1999 competition law reduced the effect of industrial concentration on the price-cost margin. The results also suggest that there is only a one-way relationship between industrial concentration and technical efficiency with industrial concentration affecting technical efficiency negatively. Furthermore, this thesis finds evidence that high industrial concentration increases price flexibility with the speed of price adjustment being higher when costs go up than down in the concentrated subsectors. Finally, the results show that there is a simultaneous relationship between industrial concentration, price rigidity, technical efficiency, and price-cost margin. A bi-directional relationship between industrial concentration and price-cost margin was found.
| Language | English |
|---|---|
| Qualification | Doctor of Philosophy |
| Awarding Institution |
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| Supervisors/Advisors |
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| Award date | 21 Nov 2012 |
| Place of Publication | [S.l.] |
| Publisher | |
| Print ISBNs | 9789461733979 |
| Publication status | Published - 2012 |
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Keywords
- food production
- food industry
- foods
- beverages
- beverage industry
- economic development
- market structure
- food prices
- indonesia
- developing countries
- south east asia
Cite this
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Market structure, price rigidity, and performance in the Indonesian food and beverages industry. / Setiawan, M.
[S.l.] : s.n., 2012. 137 p.Research output: Thesis › internal PhD, WU › Academic
TY - THES
T1 - Market structure, price rigidity, and performance in the Indonesian food and beverages industry
AU - Setiawan, M.
N1 - WU thesis, no. 5355
PY - 2012
Y1 - 2012
N2 - Keywords: industrial concentration, price rigidity, technical efficiency, price-cost margin, Structure-Conduct-Performance (SCP), new empirical industrial organization (NEIO), Indonesian food and beverages industry, Data Envelopment Analysis (DEA), system of equations The Indonesian food and beverages industry contributes significantly to the Indonesian GDP and is an important provider of employment. However, this industry is characterized by high industrial concentration which may affect pricing and performance. The objective of this thesis is to examine market structure, price rigidity, and performance as well as their relationship in the Indonesian food and beverages industry. To investigate the relationship between market structure, price rigidity, and performance, this research uses two main frameworks: Structure-Conduct-Performance (SCP) and new empirical industrial organization (NEIO). This thesis uses firm-level (establishment) data of 59 subsectors of the food and beverages industry sourced from the manufacturing survey of the Bureau of Central Statistics (BPS) over the period 1995-2006. Econometric methods and Data Envelopment Analysis (DEA) are used to address the overall objective. Empirical results show that industrial concentration converges to the same value across subsectors in the long run. Seven years after the introduction of the competition law in 1999, industrial concentration and price-cost margin are still high. Industrial concentration has a positive effect on the price-cost margin. Besides stopping the upward trend of the price-cost margin, the introduction of the 1999 competition law reduced the effect of industrial concentration on the price-cost margin. The results also suggest that there is only a one-way relationship between industrial concentration and technical efficiency with industrial concentration affecting technical efficiency negatively. Furthermore, this thesis finds evidence that high industrial concentration increases price flexibility with the speed of price adjustment being higher when costs go up than down in the concentrated subsectors. Finally, the results show that there is a simultaneous relationship between industrial concentration, price rigidity, technical efficiency, and price-cost margin. A bi-directional relationship between industrial concentration and price-cost margin was found.
AB - Keywords: industrial concentration, price rigidity, technical efficiency, price-cost margin, Structure-Conduct-Performance (SCP), new empirical industrial organization (NEIO), Indonesian food and beverages industry, Data Envelopment Analysis (DEA), system of equations The Indonesian food and beverages industry contributes significantly to the Indonesian GDP and is an important provider of employment. However, this industry is characterized by high industrial concentration which may affect pricing and performance. The objective of this thesis is to examine market structure, price rigidity, and performance as well as their relationship in the Indonesian food and beverages industry. To investigate the relationship between market structure, price rigidity, and performance, this research uses two main frameworks: Structure-Conduct-Performance (SCP) and new empirical industrial organization (NEIO). This thesis uses firm-level (establishment) data of 59 subsectors of the food and beverages industry sourced from the manufacturing survey of the Bureau of Central Statistics (BPS) over the period 1995-2006. Econometric methods and Data Envelopment Analysis (DEA) are used to address the overall objective. Empirical results show that industrial concentration converges to the same value across subsectors in the long run. Seven years after the introduction of the competition law in 1999, industrial concentration and price-cost margin are still high. Industrial concentration has a positive effect on the price-cost margin. Besides stopping the upward trend of the price-cost margin, the introduction of the 1999 competition law reduced the effect of industrial concentration on the price-cost margin. The results also suggest that there is only a one-way relationship between industrial concentration and technical efficiency with industrial concentration affecting technical efficiency negatively. Furthermore, this thesis finds evidence that high industrial concentration increases price flexibility with the speed of price adjustment being higher when costs go up than down in the concentrated subsectors. Finally, the results show that there is a simultaneous relationship between industrial concentration, price rigidity, technical efficiency, and price-cost margin. A bi-directional relationship between industrial concentration and price-cost margin was found.
KW - voedselproductie
KW - voedselindustrie
KW - voedingsmiddelen
KW - dranken
KW - drankenindustrie
KW - economische ontwikkeling
KW - marktstructuur
KW - voedselprijzen
KW - indonesië
KW - ontwikkelingslanden
KW - zuidoost-azië
KW - food production
KW - food industry
KW - foods
KW - beverages
KW - beverage industry
KW - economic development
KW - market structure
KW - food prices
KW - indonesia
KW - developing countries
KW - south east asia
M3 - internal PhD, WU
SN - 9789461733979
PB - s.n.
CY - [S.l.]
ER -