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Concentration in Indonesia Manufacturing, 1975-93

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  • Kelly Bird

Abstract

This paper analyses trends and levels of industrial concentration in 102 Indonesian industries between 1975 and 1993. There was a long-term decline in industrial concentration across the manufacturing sector over this period. The simple average four-firm concentration ratio declined from 64% in 1975 to 54% in 1993, while the percentage of industries classified as highly concentrated fell from 39% in 1975 to 28% in 1993. Allowing for foreign trade substantially reduces average concentration measures: in 1993 the average concentration of a sample of 67 industries was 53% without adjustment for foreign trade, but 41% if foreign trade was allowed for. Thus, competition is stronger in Indonesian markets than domestic concentration ratios would suggest.

Suggested Citation

  • Kelly Bird, 1999. "Concentration in Indonesia Manufacturing, 1975-93," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(1), pages 43-73.
  • Handle: RePEc:taf:bindes:v:35:y:1999:i:1:p:43-73
    DOI: 10.1080/00074919912331337487
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    References listed on IDEAS

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    1. Green, Edward J & Porter, Robert H, 1984. "Noncooperative Collusion under Imperfect Price Information," Econometrica, Econometric Society, vol. 52(1), pages 87-100, January.
    2. Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
    3. Sanjaya Lall, 1979. "Multinationals and market structure in an open developing economy: The case of Malaysia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 115(2), pages 325-350, June.
    4. Baldwin, John R & Gorecki, Paul K, 1994. "Concentration and Mobility Statistics in Canada's Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 93-103, March.
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    Cited by:

    1. Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.

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