Narjoko, Dionisius (2009): Plant entry in a more liberalised industrialisation process: an experience of Indonesian manufacturing during the 1990s.
Download (307kB) | Preview
Some major policy changes towards a more open trade and investment regime occurred in Indonesia during the 1980s and 1990s. The impact of these policy changes on the country’s industrialisation has been generally favourable. However, little is known about the impact on the dynamics of plant in the country’s manufacturing. This study addresses this subject, examining the extent and determinants of plant entry in Indonesian manufacturing over the period 1993-96, and asking how the policy reforms affected plant entry. The key finding suggests that the policy reforms increased the extent of competition within industry. This, however, does not seem to be very strong, and the study puts forward some possible explanations. The discussion reaches a consensus that maybe, during the period under this study, the process of the reform had not really been completed and, at the same time, the (predicted) positive impact of the liberalisation had not been fully realised.
|Item Type:||MPRA Paper|
|Original Title:||Plant entry in a more liberalised industrialisation process: an experience of Indonesian manufacturing during the 1990s|
|Keywords:||Firm-level data; globalisation; firm entry; trade liberalisation|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
F - International Economics > F1 - Trade > F15 - Economic Integration
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
|Depositing User:||Dionisius Ardiyanto Narjoko|
|Date Deposited:||09. Apr 2010 20:13|
|Last Modified:||13. Feb 2013 02:10|
Anagnostaki, V. and H, Louri (1995), ‘Entry and Exit from Greek Manufacturing Industry: a Test of the Symmetry Hypothesis, International Review of Applied Economics, 9(1), p.86-95.
Ariff, M. and H. Hill (1985), Export-Oriented Industrialisation: The ASEAN Experience. Sydney: Allen and Unwin.
Austin, J.S. and D.I. Rosenbaum (1991), ‘The Determinants of Entry and Exit Rates into US Manufacturing Industries, Review of Industrial Organisation, 5(2), pp.119-28.
Bain, J.S. (1949), ‘A Note on Pricing Monopoly and Oligopoly’, American Economic Review, 39(1), pp.448-69.
Bain, J.S. (1956), Barriers to New Competition. Cambridge, MA: Harvard University Press.
Baldwin, J.R. and P. Gorecki (1987), ‘Plant Creation versus Plant Acquisition: the Entry Process in Canadian Manufacturing’, International Journal of Industrial Organization, 5(1), pp.27-41.
Caves, R.E., J. Khalilzadeh-Shirazi and M.E. Porter (1975), ‘Scale Economies in Statistical Analysis of Market Power’, Review of Economics and Statistics, 57(2), pp.133-40.
Caves, R.E. and M.E. Porter (1976), ‘Barries to Exit’, in R.T. Masson and P.D. Qualls (eds.), Essays on Industrial Organization in Honorof Joe. S. Bain, Cambridge, MA: Ballinger, pp.36-39.
Caves, Richard E., M.E. Porter and A.M. Spence (1980), Competition in the Open Economy: a Model Applied to Canada. Cambridge, MA: Harvard University Press.
Dunne, T., M. Roberts and L. Samuelson (1988), ‘Patterns of Firm Entry and Exit in US Manufacturing’, Rand Journal of Economics, 19(4), pp.495-515.
Dunne, T., M. and M. Roberts (1991), ‘Variation in Producer Turnover across US Manufacturing’, in P. Geroski and J. Schwalbach (eds.), Entry and Market Contestability: an International Comparison, Oxford: Basil Blackwell, pp.187-203.
Eaton, B.C and R.G Lipsey (1980), ‘Exit Barriers are Entry Barriers: the Durability of Capital as a Barrier to Entry’, Bell Journal of Economics, 11(2), pp.721-29.
Evans, L.B. and J.J Siegfried (1992), ‘Entry and Exit in United States Manufacturing industries from 1977 to 1982’, in D.B. Audretsch and J.J. Siegfried (eds.), Empirical Studies in Industrial Organization: Essays in Honor of Leonard W. Weiss, The Netherlands: Kluwer Academic Publishers, pp.253-73.
Fotopoulus, G. and N. Spence (1998), ‘Entry and Exit from Manufacturing Industries: Symmetry, Turbulence and Simultaneity – Some Empirical Evidence from Greek Manufacturing, 1982-1988’, Applied Economics, 30(2), pp.245-262.
Geroski, P. (1991), ‘Domestic and Foreign Entry in the United Kingdom’, in P. Geroski and J. Schwalbach (eds.), Entry and Market Contestability: An International Comparison, Oxford: Basil Blackwell, pp.63-88.
Geroski, P.A. (1995), ‘What do We Know about Entry?’, International Journal of Industrial Organization, 13(4), pp.421-40.
Globerman, S., C.R John and I. Vertinsky (1994), ‘The Economic Performance of Foreign Affiliates in Canada’, Canadian Journal of Economics, 27(1), pp.143-156.
Hill, H. (1996), Southeast Asia’s Emerging Giant: Indonesian Economic Policy and Development since 1966. Cambridge: Cambridge University Press.
Khemani, R.S. and D.M. Shapiro (1986), ’The Determinants of New Plant Entry in Canada’, Applied Economics, 18, pp.1243-57.
Lay, T. (2003), ‘The Determinants of and Interaction between Entry and Exit in Taiwan’s Manufacturing’, Small Business Economics, 20(4), pp.319-34.
Liu, L. (1993), ‘Entry-exit, Learning, and Productivity Change: Evidence from Chile’ Journal of Development Economics, 42(2), p.217-42.
Mata, J. (1993), ‘Entry and Type of Entrant: Evidence from Portugal’, International Journal of Industrial Organization, 11(1), pp. 101-22.
Orr, D. (1974), ‘The Determinants of Entry: A study of the Canadian manufacturing Industries’ Review of Economics and Statistics, 56(1), pp.58-66.
Pangestu, M. (1996), Economic Reform, Deregulation, and Privatization: the Indonesian Experience. Jakarta: CSIS.
Papke, Leslie E. and Jeffrey M. Wooldridge (1996), ‘Econometric Methods for Fractional Response Variables with an Application to 401 (K) Plan Participation Rates’, Journal of Applied Econometrics, 6(11), pp.619-32.
Rosenbaum, D.I. and F. Lamort (1992), ‘Entry, Barriers, Exit, and Sunk Cost: an Analysis’, Applied Economics, 24, pp.297-304.
Rotemberg, J.J. and G. Saloner (1986), ‘A Supergame-theoritic Model of Price Wars during Booms’, American Economic Review, 76(3), pp.390-407.
Rotemberg, J.J. and Woodford, M. (1992) ‘Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity’, Journal of Political Economy, 100(6), p.1153-207.
Shapiro, D. and R.S. Khemani (1987), ’The Determinants of Entry and Exit Reconsidered’, International Journal of Industrial Organization, 5(1), pp.15-26.
Sleuwagen, L. and W. Dehandschutter (1991), ‘Entry and Exit in Belgian Manufacturing’, in P. Geroski and J. Schwalbach (eds.), Entry and Market Contestability: An International Comparison, Oxford: Basil Blackwell, pp. 111-20.
Thee, K.W. (1994), Industrialisasi di Indonesia: Beberapa Kajian. Jakarta: LP3ES.
Tybout, J., J. de Melo and V. Corbo (1991), ‘The Effects of Trade Reform on Scale and Technical Efficiency: New Evidence from Chile, Journal of International Economics, 31(3), p.231-50.
World Trade Organization (WTO) (1998), Trade Policy Review: Indonesia 1998. Geneva: World Trade Organization.