Analysis of the Effect of Industrial Concentration on Profit of the Indonesian Plastic and Packaging Industry
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 07
Abstract
The Indonesian plastics and packaging industry can have a considerable opportunity to continue to grow because the plastics and packaging industry has a significant role in the economic development of the industrial sector. This study aims to determine and analyze the effect of the level of industrial concentration on the profits of the Indonesian plastics and packaging industry. This research uses secondary data in the form of time series originating from the Indonesian Statistics for the period 2010 – 2019. The analytical technique used in this research is using qualitative and quantitative analysis techniques. The analytical method used is the calculation of the concentration ratio of 4 companies, profit calculation using Price Cost Margin and simple linear regression. The results showed that the plastic and packaging industry was concentrated with a concentration ratio of 16 percent. According to Joe S. Bain's theory, the plastics and packaging industries fall into the fifth level oligopoly category. The profit rate in this industry is relatively decreasing with an average of 34.76 percent. Based on the results of simple linear regression, it is stated that industry concentration is not significant to the profits of the Indonesian plastics and packaging industry.
Authors and Affiliations
Wihansya Haspazah, Bernadette Robiani, Harunurrasyid, Deassy Apriani
Keywords
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- EP ID EP727202
- DOI 10.47191/jefms/v6-i7-08
- Views 67
- Downloads 0
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