Does Democratization Promote Competition? Indonesian Manufacturing Pre- and Post Suharto

This paper documents the disruption of political connections associated with Suharto's fall

From:
Foreign, Commonwealth & Development Office
Published
21 January 2020
Country:
Indonesia
Document Type:
Working Paper
Theme:
Economic Growth
Authors:
Hallward-Driemeier, M.C., Kochanova, A, Rijkers, B

Abstract

Does democratization promote economic competition? This paper documents that the disruption of political connections associated with Suharto’s fall had a modest pro-competitive effect on Indonesian manufacturing industries in which his family had extensive business interests. Firms with connections to Suharto lost substantial market share following his resignation. Industries in which Suharto family firms had larger market share during his tenure exhibited weak improvements in broader measures of competition in the post-Suharto era relative to industries in which Suharto firms had not been important players.

This is an output of the World Bank’s Strategic Research Program

Citation

Hallward-Driemeier,Mary C.; Kochanova,Anna; Rijkers,Bob.(2020). Does Democratization Promote Competition? Indonesian Manufacturing Pre and Post Suharto (English). Policy Research working paper;no. WPS 9112; Washington, D.C. : World Bank Group.

Does Democratization Promote Competition? Indonesian Manufacturing Pre- and Post Suharto

Updates to this page

Published 21 January 2020
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