scholarly journals Explaining the Informal Sector in Indonesia from the Transaction Costs Perspective

2014 ◽  
Vol 16 (1) ◽  
pp. 23 ◽  
Author(s):  
Yohanna M. L. Gultom
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Informal Sector ◽  
Government Regulation ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Small Scale ◽  
Open Market ◽  
Bottom Line ◽  
High Transaction Cost

The informal sector in Indonesia is massive, and has become a challenge to the growth of the open market economy. Explanations of the cause of informality have shifted over time from structural dualism to excessive government regulation. This paper argues that merely focusing on the high cost regulation may not reveal the bottom line of informality. Assessment and elaboration of infomality need the help of the transaction cost approach that suggests that informality in the economy exists due to the high-transaction-cost institutional framework. To support the argument, this paper provides a preliminary study on the transaction costs borne by firms in the industrial manufacturing sector based on two industrial surveys conducted by BPS-Statistics Indonesia, which are the 2009 survey on medium and large-scale enterprises (MLEs) and the 2010 survey on micro and small-scale enterprises (MSEs). This paper shows that micro and small-scale enterprises with no legality bore the least transaction costs compared to those operating legally, both micro and small-scale, as well as medium and large-scale enterprises. Consequently, regulatory reforms aimed at reducing transaction costs, not merely aimed at reducing official costs and simplifying procedures, are the keys to achieving economic growth while ensuring full participation of the private sector.    

scholarly journals Understanding Informal Actors Of Plastic Waste Recycling In Semarang City

2020 ◽  
Vol 18 (1) ◽  
pp. 162-170 ◽  
Author(s):  
Budi Prasetyo Samadikun ◽  
Arya Rezagama ◽  
Bimastyaji Surya Ramadan ◽  
Pertiwi Andarani ◽  
Erina Dwi Rumanti
Keyword(s):  
Waste Management ◽  
Informal Sector ◽  
Large Scale ◽  
Solid Waste Management ◽  
Secondary Data ◽  
Plastic Waste ◽  
Small Scale ◽  
Community Based ◽  
Enterprise Level ◽  
Recycling Agent

ABSTRAKKegiatan daur ulang sampah di Kota Semarang dapat dilakukan dengan cukup baik berkat campur tangan dari sektor informal. Sayangnya, kegiatan pengelolaan sampah formal tidak mempertimbangkan nilai pemulihan sampah. Penelitian ini bertujuan untuk mengidentifikasi aliran sampah plastik di sektor informal di Kota Semarang. Peneliti menggunakan wawancara mendalam untuk mengumpulkan data. Ada 46 agen daur ulang, termasuk lima (5) pemulung, 17 pengepul 20 perusahaan skala kecil, tiga (3) perusahaan skala besar, dan 1 perantara (pabrik penggilingan plastik) yang telah diwawancarai. Data dari Badan Lingkungan Hidup Kota Semarang digunakan sebagai data sekunder. Hasil penelitian menunjukkan bahwa jumlah sampah plastik yang dihasilkan oleh masing-masing agen daur ulang diperkirakan 23,98 kg/ hari di tingkat pemulung, 54,74 kg/ hari di tingkat pengepul, 347,48 kg / hari di tingkat perusahaan skala kecil, 1.735,3 kg / hari di tingkat perusahaan skala besar, dan 2.160 kg / hari di tingkat perantara. Produsen bijih plastik daur ulang berlokasi di luar Kota Semarang, sedangkan bank sampah berbasis masyarakat adalah bagian dari pengelolaan sampah berbasis masyarakat yang tidak mencari keuntungan. Oleh karena itu, tidak dibahas secara mendalam di penelitian ini.Kata kunci: sampah plastik, aliran sampah, agen daur ulangABSTRACTWaste recycling activities in Semarang City can be conducted quite well due to the interference of the informal sector. Unfortunately,  the formal waste management activities do not consider the utilization of waste recovery value. This study aims to identify the flow of plastic waste in the informal sector in Semarang City. We used in-depth interviews to collect data. There are 46 recycling agents, including five (5) scavengers, 17 scrap dealers, 20 small scale enterprises, three (3) large scale enterprises, and 1 intermediate (plastic grinding mill) that has been interviewed. Data from The Environment Agency of Semarang City obtained as secondary data. The results showed that the amount of plastic waste generated by each recycling agent was estimated at 23.98 kg/day at the scavenger level, 54.74 kg/day at the scrap dealer level, 347.48 kg/day at the small scale enterprise level, 1,735.3 kg / day days at large scale enterprise level, and 2,160 kg/day at the level of plastic waste intermediates. Recycled plastic ore producers are located outside Semarang City, whereas the community-based waste bank is part of community based solid waste management that is not looking for profit. Hence, it is not discussed in depth in this study.Keywords: plastic waste, waste flow, recycling agent

scholarly journals Income Patterns of Woman Workers in Pakistan - A Case Study of the Urban Manufacturing Sector

2003 ◽  
Vol 8 (1) ◽  
pp. 139-154
Author(s):  
Asad Sayeed ◽  
Farhan Sami Khan ◽  
Sohail Javed
Keyword(s):  
Women Workers ◽  
Capital Accumulation ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Labour Productivity ◽  
Small Scale ◽  
Human Capital Accumulation ◽  
Home Based ◽  
Manufacturing Sectors

The paper analyses the income patterns of women workers employed in the urban manufacturing sector of Pakistan. It examines the wage differentials across regions, manufacturing sectors and industrial categories including large scale factories, small-scale enterprises and home based work. The central conclusion is that wages of women workers across sectors and industry size vary because of differences in the capital-labour ratio and hence labour productivity. The paper determines the proportion of women earning above and below the legally mandated minimum wage, which differs significantly across formal and informal industries. Finally, the earnings of workers have been examined in the context of human capital accumulation.

scholarly journals Evaluasi Pengadaan Tanah Skala Kecil dengan dan tanpa Penetapan Lokasi di Kabupaten Sleman

2021 ◽  
Vol 1 (1) ◽  
pp. 61-75
Author(s):  
Wenny Yolanda Ratna Sari ◽  
Priyo Katon Prasetyo ◽  
Sudibyanung Sudibyanung
Keyword(s):  
Government Regulation ◽  
Large Scale ◽  
Implementation Process ◽  
Land Acquisition ◽  
Small Scale ◽  
Infrastructure Development ◽  
Advantages And Disadvantages ◽  
Land Availability ◽  
The Government

Land availability is the great significant part in infrastructure development. To support the land availability, the government pursues a program called land acquisition. Land acquisition is regulated in Law Number 2 of 2012 and Government Regulation Number 71 of 2012. Based on Government Regulation Number 40 of 2014, land acquisition is divided into two, including large scale with an area of more than 5 hectares and small scale based with an area of less than 5 hectares. Small-scale land acquisition is further regulated in Presidential Regulation Number 148 of 2015 Article 121 paragraph (3) which does not require a determination of location. The purpose of this study was to determine the implementation process as well as the advantages and disadvantages of small-scale land acquisition with and without location determination in Sleman Regency. This research used a qualitative method with a descriptive approach. The results of this research showed that the implementation of land acquisition with determination of location has advantages (4) and weaknesses (6) while land acquisition without determination of location has advantages (6) and disadvantages (4).

Spatiality, Clustering, and the Agglomeration Economies of Scale

2018 ◽  
pp. 224-247
Author(s):  
Simbarashe Show Mazongonda ◽  
Innocent Chirisa
Keyword(s):  
Developing Countries ◽  
Informal Sector ◽  
Large Scale ◽  
Economies Of Scale ◽  
Agglomeration Economies ◽  
Manufacturing Firms ◽  
Small Scale ◽  
Employment Creation ◽  
Strong Ties ◽  
Knowledge Economies

This chapter is based on a study that tests the realities of agglomeration economies of scale due to clustering of small-scale manufacturing firms of the informal type in Zimbabwe. Little has been studied on how the informal sector thrives on agglomeration economies of scale in developing countries. Despite this lack of research, this chapter acknowledges the existence of strong networks among small-scale manufacturers in urban Zimbabwe. These linkages, contrary to practices within large-scale manufacturers, are cemented by strong ties of entrepreneurialism. With big manufacturers, the ties are usually worker-based and less defined along entrepreneurial lines. Using spatial statistical approach, the test revealed that tool sharing, output-input relationship, employment creation, and sharing of knowledge economies of scale are also evident in developing countries.

scholarly journals Analysis of Inter-industry Relations in Pakistan: Some Further Experiments with the 1975-76 Data

1986 ◽  
Vol 25 (4) ◽  
pp. 649-670
Author(s):  
Aftab Ali Syed
Keyword(s):  
Large Scale ◽  
Manufacturing Sector ◽  
Final Demand ◽  
Service Industries ◽  
Manufacturing Industries ◽  
Small Scale ◽  
Intermediate Inputs ◽  
Consumption Expenditures ◽  
Fixed Capital Formation ◽  
Industry Relations

Input-Output (1-0) tables of Pakistan's economy for the year 1975-76 were published by the Pakistan Institute of Development Economics (PIDE) in 1983. They delineated the structure of production of 118 industries together with the disposition of their output by five categories of final demand: consumption expenditures; gross fixed capital formation; changes in stocks; exports; and re-exports. Import have been shown to be absorbed as intermediate inputs as well as destined for final consumption. The present author presented an analytical paper [3], based on the said data-base, in which despite the useful industrial details captured, the predominant agrarian nature of Pakistan's economy was emphasized. Agricultural sector's contribution to the total gross domestic product (CDP) at factor cost amounted to 22.1 percent. Although the 1-0 tables identified some 81 manufacturing industries - both large-scale and small-scale - there were only seven industries whose contribution to the total CDP was of any significance. The manufacturing sector, as a whole, contributed only about 11.7 percent of the total CDP. Service industries, construction and the like still account for the rest of the CDP.

scholarly journals The Role of Small-scale Industry in Pakistan's Economy and Government Incentives

1986 ◽  
Vol 25 (4) ◽  
pp. 789-807
Author(s):  
Muhammad Hussain Malik ◽  
Aftab Ahmad Cheema
Keyword(s):  
Economic Development ◽  
Industrial Policy ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Small Scale ◽  
The Past ◽  
Small Scale Industry ◽  
Small Industry ◽  
The Government

Despite the recognition of the importance of small-scale industry, the Government of Pakistan's industrial policy has been biased in the past towards the large-scale manufacturing sector. The First Five Year Plan (1955-60) document states the significance of small-scale industry in the following words. Small industry has specific contributions to make to economic development. In the first place, it can contribute to the output of needed goods without requiring the organization of large new enterprises or the use of much foreign exchange to finance the import of new equipment. Secondly, it can provide opportunities for employment beyond the narrow boundaries of urban centres. Finally, as history shows, it can perform an important function in promoting growth, providing training ground for management and labour, and spreading industrial knowledge over wide areas [8, p. 471] .

Structural Change and Growth of Manufacturing Industries in Punjab: Post-Reforms Analysis

2020 ◽  
pp. 389-396
Keyword(s):  
Structural Change ◽  
Large Scale ◽  
Structural Changes ◽  
Manufacturing Sector ◽  
Small Scale ◽  
Rapid Decline ◽  
Optimum Level ◽  
Current Crisis ◽  
Employment Opportunities ◽  
Unskilled Labour

After the economic reforms of July 1991, the process of structural change led to jumping from the primary sector of the economy to tertiary by surpassing the secondary sector in India and Punjab in particular. Indeed, this process led to a rapid decline in the capacity of the manufacturing sector to offer jobs and the limited scope of the modern services sector to absorb relatively unskilled labour that was displaced from agriculture, which resulted in uneven growth of the economy, and increased unemployment. The study analysed these structural changes and its implications on the growth of production and employment of the manufacturing sector in Punjab. It was found that since the 1990s, the growth of manufacturing sector in Punjab was stagnant, whereas the trends in production and employment were declining. So, to achieve the optimum level of employment opportunities and mitigate the current crisis looming in the state of Punjab, there is a need to design a mechanism for encouraging investments in manufacturing sector particularly, in small scale industries as these industries have a greater advantage over medium/large scale units, because it uses local inputs, creates more employment opportunities and needs less start-up capital than the latter.

The tragedy of the private: transaction cost considerations

2014 ◽  
Vol 41 (6) ◽  
pp. 482-492
Author(s):  
Tamara Peneva Todorova
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Market Failure ◽  
Private Property ◽  
Market Uncertainty ◽  
Economic Activities ◽  
Content Type ◽  
Public Property ◽  
High Transaction Cost ◽  
High Degree

Purpose – The purpose of this paper is to weigh the benefits and costs of public property, as opposed to private, from the transaction cost perspective. In the absence of transaction costs, private property has clear advantages over public. However, when the true costs of running an economic system are taken into account, the advantages of private property are not so evident and public property may turn out to be the preferred form of ownership. The paper shows that in high-transaction cost sectors and economies such as the newly emerging markets in Eastern Europe, public property is a cheaper way of organizing economic activities, as it can save on transaction costs. The paper demonstrates these virtues of public ownership in relation to market failure, the provision of public goods, natural monopolies and competitive industries with a high degree of market uncertainty, opportunism and asset specificity. Design/methodology/approach – A qualitative paper discussing the advantages of public over private property in the presence of high-transaction costs. Findings – Studying different types of market failure the paper finds that public property is advantageous to private in high-transaction cost systems. Originality/value – Since most of the standard literature emphasizes the advantages of private property, the paper gives an economic explanation to those of public property taking on a new institutional approach and conducting a transaction cost analysis.

The Politics of Land Use for Distributed Renewable Energy Generation

2016 ◽  
Vol 54 (3) ◽  
pp. 524-559 ◽  
Author(s):  
Rizalino B. Cruz
Keyword(s):  
Land Use ◽  
Renewable Energy ◽  
Transaction Costs ◽  
Local Governments ◽  
Large Scale ◽  
Clean Energy ◽  
Energy Generation ◽  
Policy Adoption ◽  
Small Scale ◽  
Renewable Energy Generation

Many studies on energy generation have focused on large-scale systems. But as the search for alternative sources of clean energy becomes imperative, there is the need to examine how local governments leverage their authority on land use to permit small-scale energy facilities. This study examines various factors shaping policy adoption on distributed renewable energy generation through the lens of transaction-cost politics. It deviates from existing land-use perspectives, which usually highlight competition between traditional land-use forces to capture the gains from policy. Policy adoption here implies that actors in their exchanges have been able to identify and reduce the transaction costs that would otherwise have prevented citizens from harvesting renewable energy at their place of residence. These actors minimize transaction costs by making use of the transaction resources available to them in the political market. These resources could ease barriers to political contracting and enable actors to shape policy. They include green firms, network memberships, dedicated staff for the sustainability effort, forms of government, and educated populace, which the study found significant in shaping the adoption of zoning codes that permit distributed renewable energy generation.

scholarly journals Output, Value Added and Employment in the Small Scale Textile Industry

1975 ◽  
Vol 14 (1) ◽  
pp. 120-134
Author(s):  
Seemin Anwar
Keyword(s):  
Textile Industry ◽  
Large Scale ◽  
Structural Changes ◽  
Manufacturing Sector ◽  
National Income ◽  
Value Added ◽  
National Product ◽  
Small Scale ◽  
National Accounts ◽  
Rate Of Increase

The small scale manufacturing sector is in many ways the step-child of Pakistan's national income accounts. A number of sample surveys of the output and employment characteristics of small industries have been conducted, but no attempt has been made to apply these surveys, in a systematic fashion, to the measurement of the growth of output of this sector. In the absence of better information, compilers of Pakistan's national accounts simply assume that the small scale sector's contribution to the national product grows at the same rate as the population. However, given the rapid structural changes in large scale industry and the sharp fluctuations in the past decade in the rate of increase in the gross national product, it is unlikely that the small scale sector grew at such a uniform rate. The small scale manufacturing sector encompasses a wide array of highly differentiated economic activities and separate estimates of the value added annually by each of these activities is not feasible, in large part because the establishments in this sector rarely keep systematic records even for major items such as sales or employment. Even if firms kept records, it would be extremely difficult to monitor the thousands of existing establishments, much less keep track of firms leaving or entering the sector. Thus, any effort at sampling or regular census-taking in the small scale sector is likely to provide insufficient information from which to construct an annual index of production.

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