Dampak Liberalisasi Perdagangan terhadap Perilaku Pembentukan Harga Produk Industri melalui Structure-Conduct Performance Model

Siti Astiyah (), Akhis R. Hutabarat () and Desthy V.B. Sianipar ()
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Siti Astiyah: Bank Indonesia
Akhis R. Hutabarat: Bank Indonesia
Desthy V.B. Sianipar: Bank Indonesia

Bulletin of Monetary Economics and Banking, 2005, vol. 7, issue 4, 523-553

Abstract: This paper analyzes the impact of trade liberalization on the domestic price of industry product by utilizing the structure-conduct performance (SCP) model. Applying the model to a pooled data of the 3 digits ISIC level of Indonesian industry product, the result shows the abnormal price determination on industry level after the increase of trade liberalization. The existence of this phenomenon, the downward profit-margin rigidity, is indicated by the increase of the profit margin, which reduces the social welfare and tends to persist the inflation. A clear consequence for the Indonesian Central Bank, is to faster and increase the credibility of the middle and long term inflation target, either by clarify the policy signal and its consistency and increase the cooperation with the government.

Keywords: Trade liberalization; Structure-Conduct-Performance; Price; Industry (search for similar items in EconPapers)
JEL-codes: E31 L11 O24 P23 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:7:y:2005:i:4b:p:523-553

DOI: 10.21098/bemp.v7i4.123

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