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

  • Daniel Suryadarma

    (SMERU)

  • Adri Poesoro
  • Sri Budiyati
  • Akhmadi
  • Meuthia Rosfadhila

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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File URL: http://130.56.61.71/node/22548
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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
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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