The Impacts of Permendag NO. 21/M-DAG/PER/10/2005 on the Structure, Conduct, and Performance of Motorcycle Industry in Indonesia
- DOI
- 10.2991/icied-17.2018.21How to use a DOI?
- Keywords
- Permendag No.21/2005; Motorcycle Industry; Oligopoly; SCP
- Abstract
This research analyzes the responses of firms to the oligopoly motorcycle industry after Permendag No.21/M-DAG /PER/10/2005 (Permendag No.21 / 2005 in 2005) on structure, conduct, and performance. Price cost margin ratio represents as performance; advertising and R&D expenditure ratio as conduct; and concentration ratio as structure in the motorcycle industry during the 2001 - 2014 period, which and are distinguished based on the size of the firms. This study applies simultaneous equation system model, and the Two Stage Least Square (TSLS) for the parameter estimation. The empirical result shows that the impacts of permendag regulation as exogenous variable to CR2 growth can reduce the competition in motorcycle industry. Foreign direct investment as foreign shareholder of the firm negatively impacts on the conduct of firms because no company owns a central of R&D in Indonesia. On the performance, efficiency impacts positively on the price cost margin. The other variables on performance, concentration ratio and growth industry interaction have positive impacts on price cost margin. It describes that the ease of collusion of motorcycle industry in Indonesia can increase performance on price cost margin
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Aleknaek Martua Nababan AU - Ashintya Damayanti PY - 2017/12 DA - 2017/12 TI - The Impacts of Permendag NO. 21/M-DAG/PER/10/2005 on the Structure, Conduct, and Performance of Motorcycle Industry in Indonesia BT - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017) PB - Atlantis Press SP - 112 EP - 116 SN - 2352-5398 UR - https://doi.org/10.2991/icied-17.2018.21 DO - 10.2991/icied-17.2018.21 ID - MartuaNababan2017/12 ER -