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Dampak Liberalisasi Perdagangan terhadap Perilaku Pembentukan Harga Produk Industri melalui Structure-Conduct Performance Model

Author

Listed:
  • Siti Astiyah

    (Bank Indonesia)

  • Akhis R. Hutabarat

    (Bank Indonesia)

  • Desthy V.B. Sianipar

    (Bank Indonesia)

Abstract

This paper analyzes the impact of trade liberalization on the domestic price of industry product by utilizing the structure-conduct performance (SCP) model. Applying the model to a pooled data of the 3 digits ISIC level of Indonesian industry product, the result shows the abnormal price determination on industry level after the increase of trade liberalization. The existence of this phenomenon, the downward profit-margin rigidity, is indicated by the increase of the profit margin, which reduces the social welfare and tends to persist the inflation. A clear consequence for the Indonesian Central Bank, is to faster and increase the credibility of the middle and long term inflation target, either by clarify the policy signal and its consistency and increase the cooperation with the government.

Suggested Citation

  • Siti Astiyah & Akhis R. Hutabarat & Desthy V.B. Sianipar, 2005. "Dampak Liberalisasi Perdagangan terhadap Perilaku Pembentukan Harga Produk Industri melalui Structure-Conduct Performance Model," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 7(4), pages 1-32, March.
    • Handle: RePEc:idn:journl:v:7:y:2005:i:4:p:1-32
    DOI: https://doi.org/10.21098/bemp.v7i4.123
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    More about this item

    Keywords

    Trade liberalization; Structure-Conduct-Performance; Price; Industry;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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