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Document Type
Article
Abstract
This paper analyzes the impact of trade liberalization on the domestic price of industry product by utilizing the structure-conduct-performance (SCP) model. Applying the model to a pooled data of the 3 digits ISIC level of Indonesian industry product, the result shows the abnormal price determination on industry level after the increase of trade liberalization. The existence of this phenomenon, the downward profit-margin rigidity, is indicated by the increase of the profit margin, which reduces the social welfare and tends to persist the inflation. A clear consequence for the Indonesian Central Bank, is to faster and increase the credibility of the middle and long term inflation target, either by clarify the policy signal and its consistency and increase the cooperation with the government.JEL: E31, L11, O24, P23Keyword:Trade liberalization, Structure-Conduct-Performance, Price, Industry
Recommended Citation
Astiyah, Siti; Hutabarat, Akhis R.; and Sianipar, Desthy V.B.
(2005)
"Dampak Liberalisasi Perdagangan terhadap Perilaku Pembentukan Harga Produk Industri melalui Structure-Conduct Performance Model,"
Bulletin of Monetary Economics and Banking: Vol. 7:
No.
4, Article 3.
DOI: https://doi.org/10.21098/bemp.v7i4.123
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol7/iss4/3
First Page
523
Last Page
554
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
Bank Indonesia