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Impact of Supermarkets on Traditional Markets and Retailers in Indonesia's Urban Centers

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Author Info

  • Daniel Suryadarma

    (SMERU)

  • Adri Poesoro
  • Sri Budiyati
  • Akhmadi
  • Meuthia Rosfadhila

Abstract

This study measures the impact of supermarkets on traditional markets in urban centers in Indonesia quantitatively using difference-in-difference and econometric methods as well as qualitatively using in-depth interviews. The quantitative methods find no statistically significant impact on earnings and profit but a statistically significant impact of supermarkets on the number of employees in traditional markets. The qualitative findings suggest that the decline in traditional markets is mostly caused by internal problems from which supermarkets benefit. Therefore, ensuring the sustainability of traditional markets would require an overhaul of the traditional market management system, enabling them to compete with and survive alongside supermarkets.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22548.

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Date of creation: Jan 2007
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Handle: RePEc:eab:develo:22548

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Related research

Keywords: impact evaluation; traditional market; supermarket; Urban; Indonesia;

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Cited by:
  1. Dyck, John H. & Woolverton, Andrea E. & Rangkuti, Fahwani Yuliati, 2012. "Indonesia's Modern Retail Food Sector: Interaction With Changing Food Consumption and Trade Patterns," Economic Information Bulletin 127495, United States Department of Agriculture, Economic Research Service.
  2. Reardon, Thomas & Gulati, Ashok, 2008. "The rise of supermarkets and their development implications: International experience relevant for India," IFPRI discussion papers 752, International Food Policy Research Institute (IFPRI).
  3. Mathew Joseph & Nirupama Soundararajan & Manisha Gupta & Sanghamitra Sahu, 2008. "Impact of Organized Retailing on the Unorganized Sector," Macroeconomics Working Papers 22167, East Asian Bureau of Economic Research.
  4. Schipmann, Christin & Qaim, Matin, 2011. "Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand," Discussion Papers 108348, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  5. Bernadette Dsilva & Stephen D’silva & Roshni Subodhkumar Bhuptani, 2010. "Positioning Strategies In Indian SuperMarkets: An Empirical Study," Far East Journal of Psychology and Business, Far East Research Centre, vol. 1(3), pages 32-58, December.

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