Does Democratization Promote Competition? : Evidence from Indonesia

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. Firms with connections to Suharto lost substantial market share following hi...

Full description

Bibliographic Details
Main Authors: Hallward-Driemeier, Mary, Kochanova, Anna, Rijkers, Bob
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/752391579616218608/Does-Democratization-Promote-Competition-Indonesian-Manufacturing-Pre-and-Post-Suharto
http://hdl.handle.net/10986/33226
id okr-10986-33226
recordtype oai_dc
spelling okr-10986-332262022-09-20T00:13:30Z Does Democratization Promote Competition? : Evidence from Indonesia Hallward-Driemeier, Mary Kochanova, Anna Rijkers, Bob CORRUPTION DEMOCRACY MANUFACTURING CRONYISM POLITICAL CONNECTIONS FIRM DYNAMICS STATE-BUSINESS RELATIONSHIPS POLITICAL TURNOVER 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. 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. 2020-01-23T16:50:49Z 2020-01-23T16:50:49Z 2020-01 Working Paper http://documents.worldbank.org/curated/en/752391579616218608/Does-Democratization-Promote-Competition-Indonesian-Manufacturing-Pre-and-Post-Suharto http://hdl.handle.net/10986/33226 English Policy Research Working Paper;No. 9112 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Indonesia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CORRUPTION
DEMOCRACY
MANUFACTURING
CRONYISM
POLITICAL CONNECTIONS
FIRM DYNAMICS
STATE-BUSINESS RELATIONSHIPS
POLITICAL TURNOVER
spellingShingle CORRUPTION
DEMOCRACY
MANUFACTURING
CRONYISM
POLITICAL CONNECTIONS
FIRM DYNAMICS
STATE-BUSINESS RELATIONSHIPS
POLITICAL TURNOVER
Hallward-Driemeier, Mary
Kochanova, Anna
Rijkers, Bob
Does Democratization Promote Competition? : Evidence from Indonesia
geographic_facet East Asia and Pacific
Indonesia
relation Policy Research Working Paper;No. 9112
description 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. 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.
format Working Paper
author Hallward-Driemeier, Mary
Kochanova, Anna
Rijkers, Bob
author_facet Hallward-Driemeier, Mary
Kochanova, Anna
Rijkers, Bob
author_sort Hallward-Driemeier, Mary
title Does Democratization Promote Competition? : Evidence from Indonesia
title_short Does Democratization Promote Competition? : Evidence from Indonesia
title_full Does Democratization Promote Competition? : Evidence from Indonesia
title_fullStr Does Democratization Promote Competition? : Evidence from Indonesia
title_full_unstemmed Does Democratization Promote Competition? : Evidence from Indonesia
title_sort does democratization promote competition? : evidence from indonesia
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/752391579616218608/Does-Democratization-Promote-Competition-Indonesian-Manufacturing-Pre-and-Post-Suharto
http://hdl.handle.net/10986/33226
_version_ 1764478265495388160