Analysis of The Effect of Market Concentration Level on The Efficiency of Large and Medium Processing Industry in East Java

Widita Pambudi Wijaya, Dyah Wulan Sari, Wenny Restikasari

Abstract


This study aims to investigate the effect of market concentration on industrial efficiency. Large and medium processing industry data in East Java and the Stochastic Frontier Analysis (SFA) approach were used to investigate the impact of market concentration on the efficiency of the industry. The results of the study indicate that market concentration in the processing industry in East Java leads to oligopoly. The variable of firm size (FSize) and the level of market concentration (CR4) have a negative effect on the level of technical efficiency of large and medium industries in East Java.

Keywords


Efficiency; Market Concentration; Firm Size; manufacture industry; Stochastic Frontier Analysis

Full Text:

PDF

References


Ahn, S. (2002). Competition, innovation and productivity growth: A review of theory and evidence. OECD Economics Department Working Papers, No. 317, OECD Publishing.

Aggrey, N., Eliab, L., & Joseph, S. (2010). Firm size and technical efficiency in East African manufacturing firms. Current research journal of Economic theory, 2(2), 69–75.

Aigner, Dennis, C.A. Knox Lovell, dan Peter Schmidt. (1977). Formulation and estimation of stochastic frontier production models. J Econom 6 : 21–37.

Adji, D. Arti (1996), “Industrial Concentration and Price Adjusment : Indonesia

Case Study”, Kelola No. 12/V/96.

Afrianto, D., & SANTOSO, P. B. (2010). Analisis Pengaruh Stok Beras, Luas Panen, Rata-Rata Produksi, Harga Beras, dan Jumlah Konsumsi Beras Terhadap Ketahanan Pangan di Jawa Tengah (Doctoral dissertation, UNIVERSITAS DIPONEGORO).

Anandra, A. R., & ARIANTI, F. (2011). Analisis Efisiensi Penggunaan Faktor-Faktor Produksi Pada Usaha Ternak Ayam Ras Pedaging Di Kabupaten Magelang (Doctoral dissertation, Universitas Diponegoro).

Biggs, T., Shah, M., & Srivastava, P. (1996). Technological

Capabilities and Learning in African Enterprises. World Bank Technical Paper, 288. Africa Technical Department Series. Regional Program of Enterprise Development (REPD) Case Study Series.

Washington, D.C.: World Bank (Africa Region).

Bird, K. (1999). Are Industrial Concentration an Market Shares Reliable Indicators of Competition? USAID Partnership for Economic Growth (PEG) Project .

Carlton, D. W., dan Perloff, J. M. (2000). Modern Industrial Organization 3rd edition. Addison Wesley.

Chapelle, K., & Plane, P. (2005). Technical efficiency measurement within the manufacturing sector in Côte d'Ivoire: A stochastic frontier approach. Journal of Development Studies, 41(7), 1303–1324.

Charoenrat, T., Harvie, C., & Amornkitvikai, Y. (2013). Thai manufacturing small and medium sized enterprise technical efficiency: Evidence from firm level industrial census data. Journal of Asian Economics, 27, 42–56.

Charoenrat, T., & Harvie, C. (2014). The efficiency of SMEs in Thai manufacturing: A stochastic frontier analysis. Economic Modelling, 43, 372-393.

Coelli, Tim., Estache, Antonio., Perelman, Sergio., & Trujillo, Lourdes. (2003). A Primer on Efficiency Measurement for Utilities and Transport Regulators. WBI Development Studies, February 2003.

Dennis, W., & Perloff, M. (2000). Modern Industrial Organization. Third Edition, Addison-Wesley, USA

Evans, David B., Jeremy A. Lauer, C. Murray dan A. Tandon. (2000). The Comparative Efficiency of National Health Systems in Producing Health: An Analysis of 191 Countries. GPE Discussion Paper No. 29. EIP/GPE/EQC, WHO.

Faried, W. (1991). Ekonomi Makro. BPFE UGM, Yogyakarta

Goldar, B. (1986b). Import substitution, industrial concentration and productivity growth in Indian manufacturing. Oxford Bulletin of Economics and Statistics, 48, pp. 143-164.

Hasibuan, Nurimansyah. 1993. Ekonomi Industri: Persaingan, monopoli, dan Regulasi. Jakarta: LP3S.

Hicks, J.R., (1935). Annual survey of economic theory: the theory of monopoly,

Econometrica, 3(1):1–20.

Hidayati, W. (2009). Analisis struktur, perilaku dan keragaan pasar rumput laut Eucheuma cottoni: kasus di Kecamatan Mangarabombang. Kabupaten Takalar, Provinsi Sulawesi Selatan.

Ikemoto, Y. (1986). Technical progress and the level of technology in asian countries. The Developing Economies XXXIV-4:368–90.

Jaya, Wihana Kirana. (2001). Ekonomi Indusri. Edisi Revisi. Jogjakarta: BPFE UGM.

Kalirajan, K. P. (1993), “On the Simultaneity between Market Concentration and

Profitability: The Case of a small – open developing country”, International Economic Journal Vol. 7 number 1.

Klacek J., M. Vosvrda, dan S. Schlosser. (2007). KLE Production Function and Total Factor Productivity. Statistika No. 4.

Kumbhakar, SC., dan Lovell, C.A.K. (2003). Stochastic Frontier Analysis. Cambridge. Cambridge University Press.

Kuncoro, Mudrajad. 1997. Ekonomi Pembangunan: Teori, Masalah, dan Kebijakan. Yogyakarta: Unit Penerbit dan Percetakan Akademi Manajemen Perusahaan YKPN.

Lestari, E. P. (2013). Penguatan ekonomi industri kecil dan menengah melalui platform klaster industri. Jurnal Organisasi dan Manajemen, 6(2), 146-157.

Lincolin A., & Adiningsih S. (2003). Ekonomi Pembangunan, Edisi Ketiga. STIE YKPN, Yogyakarta.

Lipsey, Richard B dkk, (1992). Pengantar Mikro ekonomi Intermediate. Raja Grafindo Persada, Jakarta.

Mangunwihardjo, Suyudi. (1997). Peranan Industri di Indonesia dalam Menghadapi Globalisasi. Pidato Pengukuhan Guru Besar

Madya. Fakultas Ekonomi UNDIP, Semarang. (Tidak Dipublikasikan).

Margono, H., & S.C. Sharma. (2006). Efficiency and productivity analyses of Indonesian manufacturing industries. 17, 979-995

Martin, Stephen. (1994). Industrial Economics: Economics Analysis and Public Policy Second edition. New York : Macmillan Publishing Company.

Meeusen, Wim dan Julien Van den Broeck. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. Int Econ Rev 8 : 435–444.

Nickell, S., Wadhwani, S. and Wall, M. (1992). Productivity growth in U.K. companies, 1975-1986. European Economic Review, 36, pp. 1055-1091.

Nickell, S., Nicolitsas, D. and Dryden, N. (1997) What makes firms perform well? European Economic Review, 41, pp. 783-796.

Nigreenckell, S.J. (1996) Competition and corporate performance. Journal of Political Economy, 104, pp. 724-746.

Nicholson, Walter (2004). Optimal Extended Unemployment Benefits

Pindyck, R., & Rubinfield, D. L. (1995). Microeconomics, Prentice Hall International, Inc.

Pareto & Koopmans (1950). Ekonomi Industri. Yogyakarta: BPFE.

Pangestu, M., Aswicahyono, H., Anas, T., & Ardyanto, D. (2002). The Evolution of Competition Policy in Indonesia. Review of Industrial Organization , 205-224.

Pavelescu, Florin. (2011). Some aspects of the translog production function estimation. Romanian Journal of Economics, vol. 32, issue 1(41) : 131-150.

Pracoyo, T. K., & Pracoyo, A.(2006). “Aspek Dasar Ekonomi Mikro.“

Rizkyanti, A. (2016). Analisis Struktur Pasar Industri Karet dan Barang Karet Periode Tahun 2009. Media Ekonomi, 18(2).

Rosa, Aslamia. 2004. Analisis Keterkaitan dan Kinerja Agroindustri Indonesia. Jurnal Kajian Ekonomi.Vol.3. No 1. PPS Universitas Sriwijaya

Setiawan, Maman. (2006). “Analisis Hubungan Antara Struktur , Perilaku dan Performance Industri di Indonesia” Disertasi yang dipublikasikan, Laboratorium

Sharma, Khem R. dan Leung, P.S. (1998). Technical efficiency of carp production in Nepal: An application of the stochastic frontier production function approach. Aquaculture Economics and Management 2 : 129-140.

Shepherd, W. (1999). The Economics of Industrial Organization. Illinois: WavelandPress.

Simanjuntak, P. J. (1985). Pengantar Ekonomi Sumber Daya Manusia. Malang : Fakultas Ekonomi Universitas Brawijaya.

Sinungan, M. (2005). Produtivitas Apa dan Bagaimana. Jakarta : Bumi Aksara.

Soekartawi. (1990). Teori Ekonomi Produksi, Dengan Pokok Bahasan Analisis Fungsi Cobb-Douglass, Cetakan Pertama. Jakarta : CV. Rajawali

Sugiarto dkk. (2002). Ekonomi Mikro Sebuah Kajian Komprehensif. Jakarta : PT. Gramedia Pustaka Utama.

Sukirno, S. (2003). Pengantar Teori Mikroekonomi, Edisi Ketiga. , Jakarta : PT. Raja Grafindo Persada.

Sumodiningrat, Gunawan. (1997). Ekonometrika Pengantar, Edisi Pertama, Cetakan Kelima. BPFE, Yogyakarta.

Tingum, E., & Ofeh, M. A. (2017). Technical Efficiency of Manufacturing Firms in Cameroon: Sources and Determinants. International Journal of Financial Research, 8(3), 172–186.

Wigati, Hening dan Elan Satriawan (2002). “Entry, Exit, dan Tingkat Konsentrasi

pada Industri Manufaktur di Indonesia, 1995 – 1997“, Jurnal Ekonomi dan Bisnis Indonesia, Vol. 17 No. I.

Winsih. (2007). Skripsi “Analisis Struktur, Perilaku dan Kinerja Industri Manufaktur Indonesia”. Bogor : FEIPB

Witono. (1999). Beberapa Alternatif Pendekatan untuk Mengukur Efisiensi atau In-Efisiensi dalam Usahatani. Informatika Pertanian, Volume 8 (Desember 1999)




DOI: https://doi.org/10.21107/mediatrend.v16i2.11584



Copyright (c) 2021 Media Trend

Creative Commons License

Mediatrend © 2015 - Journal of Economic & Development Studies | Development Economics Program - Faculty of Economics and Bussiness, Trunojoyo University
DESKRIPSI GAMBAR DESKRIPSI GAMBAR