STRUKTUR PASAR DAN KEBERLANJUTAN INDUSTRI BROILER DI SUMATERA BARAT

Ridwan, Endrizal and Fitrimawati, Fitrimawati and Sumarni, Leli STRUKTUR PASAR DAN KEBERLANJUTAN INDUSTRI BROILER DI SUMATERA BARAT. Fekon. (Unpublished)

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Abstract

This study examined two opposite effects of two dimensions of social capital on profitability. The first dimension, bridging (inclusive) social capital, facilitates coordination and cooperation and channels valuable information. However,this healthy business environment may ease the potential entry into the markets. The second dimension, bonding (exclusive) social capital, promotes market collusion, but limits the spread of information. Both dimensions affect business costs and revenues in opposite ways. Using the fourth wave of the Indonesian Family Life Survey (IFLS), this study shows that bridging social capital promoted market competition, which was good for consumers. However, its net effect on profit was negative, and bonding social capital had no significant effect on either competition or profit. These findings support the view that profit positively correlates with price instability, while bridging social capital works toward price stability.

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