Does Democratization Promote Competition?: Indonesian Manufacturing Pre and Post Suharto

Mary Hallward-Driemeier, Anna Kochanova and Bob Rijkers

No 9112, Policy Research Working Paper Series from The World Bank

Abstract: Does democratization promote economic competition? This paper documents that the disruption of political connections associated with Suharto's fall had a modest pro-competitive effect on Indonesian manufacturing industries in which his family had extensive business interests. Firms with connections to Suharto lost substantial market share following his resignation. Industries in which Suharto family firms had larger market share during his tenure exhibited weak improvements in broader measures of competition in the post-Suharto era relative to industries in which Suharto firms had not been important players.

Keywords: General Manufacturing; Construction Industry; Common Carriers Industry; Textiles; Apparel&Leather Industry; Pulp&Paper Industry; Plastics&Rubber Industry; Food&Beverage Industry; Business Cycles and Stabilization Policies; Finance and Development; Financial Economics; Health Care Services Industry; International Trade and Trade Rules; Energy and Mining (search for similar items in EconPapers)
Date: 2020-01-21
New Economics Papers: this item is included in nep-com, nep-his and nep-sea
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9112

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