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

Daniel Suryadarma, Adri Poesoro, Sri Budiyati, Akhmadi Akhmadi and Meuthia Rosfadhila

Development Economics Working Papers from East Asian Bureau of Economic Research

Abstract: 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.

Keywords: impact evaluation; traditional market; supermarket; Urban; Indonesia (search for similar items in EconPapers)
JEL-codes: L81 (search for similar items in EconPapers)
Date: 2007-01
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