IDEAS home Printed from https://ideas.repec.org/p/ags/cfcp11/125323.html
   My bibliography  Save this paper

Competition between traditional food traders and supermarkets in Indonesia

Author

Listed:
  • Suryadarma, Daniel

Abstract

In Indonesia’s urban centres, supermarkets have multiplied recently. With cheaper higher-quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. This paper evaluates whether that is happening. It finds that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. The paper recommends policy to strengthen traditional traders and tackle the problem of street vendors.

Suggested Citation

  • Suryadarma, Daniel, 2011. "Competition between traditional food traders and supermarkets in Indonesia," 2011: The Supermarket Revolution in Food: Good, Bad or Ugly for the World's Farmers, Consumers and Retailers?, 14-16 August 2011 125323, Crawford Fund.
    • Handle: RePEc:ags:cfcp11:125323
    DOI: 10.22004/ag.econ.125323
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/125323/files/Suryadarma2011.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.125323?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
    2. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    3. Bart Minten, 2008. "The Food Retail Revolution in Poor Countries: Is It Coming or Is It Over?," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 767-789, July.
    4. Jerry Hausman & Ephraim Leibtag, 2007. "Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1157-1177.
    5. repec:bla:devpol:v:24:y:2006:i:2:p:163-174 is not listed on IDEAS
    6. Georgeanne M. Artz & Kenneth E. Stone, 2006. "Analyzing the Impact of Wal-Mart Supercenters on Local Food Store Sales," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1296-1303.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 7(10), pages 1-17, October.
    2. Chang, Han-Hsin & Di Caprio, Alisa & Sahara, Sahara, 2015. "Global Agrifood Value Chains and Local Poverty Reduction: What Happens to Those Who Don’t Plug In?," ADB Economics Working Paper Series 453, Asian Development Bank.
    3. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, LAR Center Press, vol. 7(10), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suryadarma, Daniel & Poesoro, Adri & Akhmadi & Budiyati, Sri & Rosfadhila, Meuthia & Suryahadi, Asep, 2010. "Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia," Food Policy, Elsevier, vol. 35(1), pages 79-86, February.
    2. Volpe, Richard J., III, 2011. "Evaluating the Performance of U.S. Supermarkets: Pricing Strategies, Competition from Hypermarkets, and Private Labels," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-16, December.
    3. David Atkin & Benjamin Faber & Marco Gonzalez-Navarro, 2018. "Retail Globalization and Household Welfare: Evidence from Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 1-73.
    4. repec:rre:publsh:v:38:y:2008:i:1:p:8-28 is not listed on IDEAS
    5. Zipitría, Leandro, 2011. "Impacto económico del Supermercadismo [The Economics of Supermarkets: A Brief Literature Review]," MPRA Paper 28419, University Library of Munich, Germany.
    6. Vandegrift, Donald & Loyer, John & Kababik, David, 2011. "The effect of Walmart on the tax base: evidence from New Jersey," MPRA Paper 30937, University Library of Munich, Germany.
    7. Donald Vandegrift, 2016. "The effect of Walmart and Target on property tax rates," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 309-327, October.
    8. Tandon, Sharad & Landes, Maurice R. & Woolverton, Andrea, 2011. "The Expansion of Modern Grocery Retailing and Trade in Developing Countries," Economic Research Report 262237, United States Department of Agriculture, Economic Research Service.
    9. Peralta, Denis & Kim, Man-Keun, 2016. "Big-Box Retailers and Personal Income Growth in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235216, Agricultural and Applied Economics Association.
    10. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    11. Alessandro Bonanno & Stephan J. Goetz, 2012. "WalMart and Local Economic Development," Economic Development Quarterly, , vol. 26(4), pages 285-297, November.
    12. Alessandro Bonanno & Rigoberto A. Lopez, 2008. "Wal-Mart’s Monopsony Power in Local Labor Markets," Food Marketing Policy Center Research Reports 103, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    13. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
    14. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    15. Daniel Hanner & Daniel Hosken & Luke M. Olson & Loren K. Smith, 2015. "Dynamics in a Mature Industry: Entry, Exit, and Growth of Big‐Box Grocery Retailers," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(1), pages 22-46, March.
    16. Alam, Md. Rafayet & Morshed, A.K.M. Mahbub, 2021. "Price dispersion across U.S. cities: The role of Walmart," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 227-237.
    17. Charles Courtemanche & Art Carden, 2014. "Competing with Costco and Sam's Club: Warehouse Club Entry and Grocery Prices," Southern Economic Journal, John Wiley & Sons, vol. 80(3), pages 565-585, January.
    18. Borrescio-Higa, Florencia, 2015. "Can Walmart make us healthier? Prescription drug prices and health care utilization," Journal of Health Economics, Elsevier, vol. 44(C), pages 37-53.
    19. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    20. Sven-Olov Daunfeldt & Oana Mihaescu & Helena Nilsson & Niklas Rudholm, 2017. "What happens when IKEA comes to town?," Regional Studies, Taylor & Francis Journals, vol. 51(2), pages 313-323, February.
    21. Alejandro Guarín, 2013. "The Value of Domestic Supply Chains: Producers, Wholesalers, and Urban Consumers in Colombia," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 511-530, September.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cfcp11:125323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.crawfordfund.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.