Foreign Presence and Indonesian Food Industry Performance
This paper analyzes the influence of foreign presence on the performance of food industry in Indonesia using panel data from 28 subsectors in the period of 2011-2015. The data used is the Annual Survey of Large and Medium Industries (IBS) from Statistics Indonesia. The performance indicator utilize...
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| Format: | Article |
| Language: | English |
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EconJournals
2020-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/9140 |
| _version_ | 1797911435777409024 |
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| author | Dahlia Nauly Harianto Harianto Sri Hartoyo Tanti Novianti |
| author_facet | Dahlia Nauly Harianto Harianto Sri Hartoyo Tanti Novianti |
| author_sort | Dahlia Nauly |
| collection | DOAJ |
| description |
This paper analyzes the influence of foreign presence on the performance of food industry in Indonesia using panel data from 28 subsectors in the period of 2011-2015. The data used is the Annual Survey of Large and Medium Industries (IBS) from Statistics Indonesia. The performance indicator utilized is the price cost margin (PCM). The PCM model was estimated using regression and tested with the Hausman statistical test. The results show that foreign presence increases the performance of Indonesia's food industry. Other factors that affect the industry's performance are industry concentration, market growth and imports of raw materials. Foreign presence, concentration and market growth have a positive effect on performance, meanwhile import ratio has a negative effect. The government needs to continue to encourage foreign investment in the food industry since the presence of foreign presence will improve industrial performance. In addition, efforts are also needed to supply quality raw materials by encouraging the development of domestic upstream industries.
Keywords: foreign presence, margins, food industry, Indonesia
JEL Classifications: L25, L66
DOI: https://doi.org/10.32479/ijefi.9140
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| first_indexed | 2024-04-10T11:40:34Z |
| format | Article |
| id | doaj.art-2c70f418321044e39b4f3f004eabca6b |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:40:34Z |
| publishDate | 2020-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-2c70f418321044e39b4f3f004eabca6b2023-02-15T16:17:33ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382020-03-01102Foreign Presence and Indonesian Food Industry PerformanceDahlia Nauly0Harianto Harianto1Sri Hartoyo2Tanti Novianti3Faculty of Agriculture, University of Muhammadiyah JakartaFaculty of Economics dan Management, IPB UniversityFaculty of Economics dan Management, IPB UniversityFaculty of Economics dan Management, IPB University This paper analyzes the influence of foreign presence on the performance of food industry in Indonesia using panel data from 28 subsectors in the period of 2011-2015. The data used is the Annual Survey of Large and Medium Industries (IBS) from Statistics Indonesia. The performance indicator utilized is the price cost margin (PCM). The PCM model was estimated using regression and tested with the Hausman statistical test. The results show that foreign presence increases the performance of Indonesia's food industry. Other factors that affect the industry's performance are industry concentration, market growth and imports of raw materials. Foreign presence, concentration and market growth have a positive effect on performance, meanwhile import ratio has a negative effect. The government needs to continue to encourage foreign investment in the food industry since the presence of foreign presence will improve industrial performance. In addition, efforts are also needed to supply quality raw materials by encouraging the development of domestic upstream industries. Keywords: foreign presence, margins, food industry, Indonesia JEL Classifications: L25, L66 DOI: https://doi.org/10.32479/ijefi.9140 http://mail.econjournals.com/index.php/ijefi/article/view/9140 |
| spellingShingle | Dahlia Nauly Harianto Harianto Sri Hartoyo Tanti Novianti Foreign Presence and Indonesian Food Industry Performance International Journal of Economics and Financial Issues |
| title | Foreign Presence and Indonesian Food Industry Performance |
| title_full | Foreign Presence and Indonesian Food Industry Performance |
| title_fullStr | Foreign Presence and Indonesian Food Industry Performance |
| title_full_unstemmed | Foreign Presence and Indonesian Food Industry Performance |
| title_short | Foreign Presence and Indonesian Food Industry Performance |
| title_sort | foreign presence and indonesian food industry performance |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/9140 |
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