Foreign Presence and Indonesian Food Industry Performance

Dahlia Nauly, Harianto Harianto, Sri Hartoyo and Tanti Novianti
Additional contact information
Dahlia Nauly: Doctoral Student of Agricultural Economics, Faculty of Economics and Management, IPB University, Indonesia,
Harianto Harianto: Faculty of Economics dan Management, IPB University, Indonesia.
Sri Hartoyo: Faculty of Economics dan Management, IPB University, Indonesia.
Tanti Novianti: Faculty of Economics dan Management, IPB University, Indonesia.

International Journal of Economics and Financial Issues, 2020, vol. 10, issue 2, 48-52

Abstract: This paper analyzes the influence of foreign presence on the performance of food industry in Indonesia using panel data from 28 subsectors in the period of 2011-2015. The data used is the Annual Survey of Large and Medium Industries (IBS) from Statistics Indonesia. The performance indicator utilized is the price cost margin (PCM). The PCM model was estimated using regression and tested with the Hausman statistical test. The results show that foreign presence increases the performance of Indonesia's food industry. Other factors that affect the industry's performance are industry concentration, market growth and imports of raw materials. Foreign presence, concentration and market growth have a positive effect on performance, meanwhile import ratio has a negative effect. The government needs to continue to encourage foreign investment in the food industry since the presence of foreign presence will improve industrial performance. In addition, efforts are also needed to supply quality raw materials by encouraging the development of domestic upstream industries.

Keywords: foreign presence; margins; food industry; Indonesia (search for similar items in EconPapers)
JEL-codes: L25 L66 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/9140/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/9140/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2020-02-6

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().