The Analysis of Structure, Conduct and Performance of Indonesian Textile Industry: Evidence from 2011-2018

GRACE HELDA N, Poppy Ismalina, M.Ec.Dev., Ph.D.

2021 | Skripsi | S1 ILMU EKONOMI

Indonesian Textile Industry is one of the manufacture industries which Indonesia is currently focusing on to improve. The industry itself recorded the highest growth of 15.08% during the third quarter in 2019. The growth exceeds Indonesia's economic growth which was 5.02% in the same period. This research is purposely to identify the structure, conduct and performance (SCP) of Indonesian Textile Industry from 2011-2018. Quantitative of econometrics-based approach and qualitative methods were being involved in conducting this research on 10 textile companies included in Indonesia Stock Exchange. The results indicate that concentration ratio (CR4) and efficiency have positive and significant effects towards price cost margin (PCM) while growth shows significant and negative relationship on price cost margin (PCM). While minimum scale of efficiency (MES) shows positive yet insignificant relationship towards the price cost margin (PCM). From the results, the numbers showcase that the overall independent variables are significantly affecting price cost margin (PCM).

Indonesian Textile Industry is one of the manufacture industries which Indonesia is currently focusing on to improve. The industry itself recorded the highest growth of 15.08% during the third quarter in 2019. The growth exceeds Indonesia's economic growth which was 5.02% in the same period. This research is purposely to identify the structure, conduct and performance (SCP) of Indonesian Textile Industry from 2011-2018. Quantitative of econometrics-based approach and qualitative methods were being involved in conducting this research on 10 textile companies included in Indonesia Stock Exchange. The results indicate that concentration ratio (CR4) and efficiency have positive and significant effects towards price cost margin (PCM) while growth shows significant and negative relationship on price cost margin (PCM). While minimum scale of efficiency (MES) shows positive yet insignificant relationship towards the price cost margin (PCM). From the results, the numbers showcase that the overall independent variables are significantly affecting price cost margin (PCM).

Kata Kunci : Industrial Economics, Textile Industry, Textile, Economics, Industry, Industrial, Price Cost Margin, Efficiency, Minimum Scale of Efficiency, Concentration Ratio