Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 July 2014 Vol. 3(7), pp 296-314

Copyright © 2014 Global Advanced Research Journals   

 

Original Research Articles

The Dynamics of Clove Cigarette Industrial Clusters In Indonesia 

Mudrajad Kuncoro 

Professor in Economics,  Faculty of Economics and Business,  Gadjah Mada University, Yogyakarta, Indonesia. 

Email: profmudrajadk@gmail.com : URL: http://www.mudrajad.com 

Accepted 23 July 2014

 

Abstract

This paper attempts to illuminate the dynamics of Indonesia’s clove cigarette industry using Structure-Conduct-Performance (SCP) paradigm and industrial cluster approach. We employed concentration ratios (concentration ratio and Herfindahl-Hirschman Index) and performance ratios in SCP analysis. To identify industrial clusters, we used Geographic Information System (GIS) and specialization index. The structure of clove cigarette industry suggested that an oligopoly with high concentration has been found, albeit declined slightly over the period 1996-2003. As far as geographic concentration is concerned, we found that this industry has clustered overwhelmingly in and around four districts, namely Kudus, Kediri, Surabaya, and Malang. Our study confirms that the spatial pattern of industrial development in Indonesia shows an uneven distribution of manufacturing industry geographically. Cigarette sales were highly inelastic, even during the economic turmoil over 1999-2003, and had remained strong leading to a remarkable performance in terms of value added, employment, and export.                                                

Keywords: clove cigarette industry, oligopoly, concentration ratio, cluster

Related Articles


Original Research Articles
Baba Usman Ahmadu, Ngilari Maigana Usiju, Ahmad Ibrahim, Apagu Adamu Adiel, Delia Tumba, Musa Rimamchika, Joshua Danji Solomon
Lingering hunger among primary school pupils residing in rural areas of Borno State North Eastern Nigeria implication for education and food supplementation programs
Glo. Adv. Res. J. Manage. Bus. Stud. December 2012 Vol: 1(7): - [Abstract] [Full Text - PDF] (147 KB)
Sumaira Hafeez, Liu Zhangyong, Jin Tao*, Shahid Iqbal Awan, Irshad Ahmad, Toheed Anwar, Rahat Sharif, Ntambo Mbuya Sylvain and Consolatha Chambi
Assessment of Drought Tolerance in Spring Wheat (Triticum Aestivum L.) At Different Growth Stages under the Rainfed Conditions of Rawalakot Azad Kashmir Pakistan
Glo. Adv. Res. J. Manage. Bus. Stud. April 2016 Vol: 5(4): - [Abstract] [Full Text - PDF] (259 KB)
Alaa El-Din H Sayed, Usama M Mahmoud and Imam A Mekkawy
Genotoxicity induced by 4-Nonylphenol in adult and embryos of Clarias gariepinus
Glo. Adv. Res. J. Manage. Bus. Stud. March 2013 Vol: 2(3): - [Abstract] [Full Text - PDF] (1,377 KB)
Chagwiza Godfrey, Zivenge Emmanuel, Chivuraise Chipo, Munyati Vincent, Joseph P Musara
An Assessment on Factors Affecting Urban Vegetable Production in Harare, Zimbabwe
Glo. Adv. Res. J. Manage. Bus. Stud. October 2012 Vol: 1(8): - [Abstract] [Full Text - PDF] (154 KB)
Avendaño-Arrazate Carlos Hugo, Martínez-Hernández Gregorio, Moreno-Pérez Esaú del C, Sandoval-Esquivez Alfredo, Campos-Rojas Eduardo, Aguirre-Medina Juan F, Cadena-Iñíguez Jorge, Ariza-Flores Rafael.
Morphological Characterization of Mango (Mangiferaindica L.) in Mexico
Glo. Adv. Res. J. Manage. Bus. Stud. September 2017 Vol: 6(9): - [Abstract] [Full Text - PDF] (718 KB)
Okpara Ihunanya Chinyere, Utoo Priscilla Mwuese and Bako Ishaku Ara
Prevalence and awareness of hypertension amongst staff and students of a tertiary institution in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. January 2015 Vol: 4(1): - [Abstract] [Full Text - PDF] (117 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Mudrajad Kuncoro on Google Scholar
Mudrajad Kuncoro on Pubmed

Statistics

Viewed 2952
Printed 1994
Downloaded 5184
Powered By iPortal Works