Industrial concentration and price-cost margin in the Indonesian food and beverages sector

Maman Setiawan (), Grigorios Emvalomatis and Alfons Oude Lansink ()

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Abstract: This paper investigates trends in industrial concentration and its relationship with the price-cost margin in 54 subsectors of the Indonesian food and beverages sector in the period 1995-2006. This study uses firm-level survey data provided by the Indonesian Bureau of Central Statistics (BPS), classified at the five-digit International Standard Industrial Classification (ISIC) Level. The results show a significant increase in industrial concentration in 1995 to 1999, which coincided with the period of the economic crisis in Indonesia. After 1999, the industrial concentration exhibits a slightly decreasing long-term trend. Furthermore, the industrial concentration for all subsectors tends to converge to the same value in the long run. Additionally, results show that higher industrial concentration yields a higher price-cost margin. Finally, the introduction of the competition law in 1999 has slightly lowered industrial concentration and the price-cost margin. Keywords: industrial concentration, price-cost margin, competition law, food and beverages sector

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-06-27
Note: View the original document on HAL open archive server: https://hal.science/hal-00712376
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Published in Applied Economics, 2011, pp.1. ⟨10.1080/00036846.2011.581220⟩

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Journal Article: Industrial concentration and price-cost margin of the Indonesian food and beverages sector (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00712376

DOI: 10.1080/00036846.2011.581220

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