The relationship between business competition and welfare in Indonesia.

This research freshly investigates the effect of business competition on national welfare in Indonesia. This research uses business competition index data obtained from the Indonesia Competition Commission (KPPU) and welfare indicators data collected from the Indonesian Bureau of Central Statistics...

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Main Authors: Maman Setiawan, Rina Indiastuti, Nury Effendi
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0308877
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author Maman Setiawan
Rina Indiastuti
Nury Effendi
author_facet Maman Setiawan
Rina Indiastuti
Nury Effendi
author_sort Maman Setiawan
collection DOAJ
description This research freshly investigates the effect of business competition on national welfare in Indonesia. This research uses business competition index data obtained from the Indonesia Competition Commission (KPPU) and welfare indicators data collected from the Indonesian Bureau of Central Statistics (BPS) at the economic sectoral and provincial levels for the period 2018-2020. The relationship between business competition and welfare is estimated using pooled regression model combining year, economic sector, and province. This research also uses business competition index applying both same weights for all dimensions of competition and the weights derived from principal component analysis. This research finds that business competition has a positive effect on welfare as represented by gross regional domestic product, regional productivity, productivity growth, wages, and human development index. Furthermore, the regions with high scores on the competition index mostly come from Java Island. Therefore, Indonesian government must encourage the mainstreaming of business competition in all provinces in Indonesia.
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institution OA Journals
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language English
publishDate 2025-01-01
publisher Public Library of Science (PLoS)
record_format Article
series PLoS ONE
spelling doaj-art-bb373be81c6b4820b2310de9fe8bc9a22025-08-20T01:48:37ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01201e030887710.1371/journal.pone.0308877The relationship between business competition and welfare in Indonesia.Maman SetiawanRina IndiastutiNury EffendiThis research freshly investigates the effect of business competition on national welfare in Indonesia. This research uses business competition index data obtained from the Indonesia Competition Commission (KPPU) and welfare indicators data collected from the Indonesian Bureau of Central Statistics (BPS) at the economic sectoral and provincial levels for the period 2018-2020. The relationship between business competition and welfare is estimated using pooled regression model combining year, economic sector, and province. This research also uses business competition index applying both same weights for all dimensions of competition and the weights derived from principal component analysis. This research finds that business competition has a positive effect on welfare as represented by gross regional domestic product, regional productivity, productivity growth, wages, and human development index. Furthermore, the regions with high scores on the competition index mostly come from Java Island. Therefore, Indonesian government must encourage the mainstreaming of business competition in all provinces in Indonesia.https://doi.org/10.1371/journal.pone.0308877
spellingShingle Maman Setiawan
Rina Indiastuti
Nury Effendi
The relationship between business competition and welfare in Indonesia.
PLoS ONE
title The relationship between business competition and welfare in Indonesia.
title_full The relationship between business competition and welfare in Indonesia.
title_fullStr The relationship between business competition and welfare in Indonesia.
title_full_unstemmed The relationship between business competition and welfare in Indonesia.
title_short The relationship between business competition and welfare in Indonesia.
title_sort relationship between business competition and welfare in indonesia
url https://doi.org/10.1371/journal.pone.0308877
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