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Industrial Organization: Indonesian Manufacture

Author

Listed:
  • Widodo, Tri

Abstract

Structure-Conduct-Performance (SCP) is a central issue in the Industrial-Organization (IO). Analysis of SCP typically uses linear partial and simple approaches: Structure affects Conduct and then Conduct affects Performance. In the real world, Structure, Conduct and Performance have associated relationship with each other interactively and simultaneously. This paper uses analytical approach to scrutinizes the model of interactive SCP of Indonesian manufacturing industry and to apply simultaneous equations econometric models. This paper concludes that the SCP paradigm may be improperly giving to much weight to concentration as an explanatory variable for industry conduct and performance. In the case of Indonesian manufacture, concentration does not occupy the central place of the SCP paradigm.

Suggested Citation

  • Widodo, Tri, 2003. "Industrial Organization: Indonesian Manufacture," MPRA Paper 78326, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78326
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    File URL: https://mpra.ub.uni-muenchen.de/78326/1/MPRA_paper_78326.pdf
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    More about this item

    Keywords

    Structure-Conduct-Performance; Industrial Organization; Interactive Model;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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