Abstract
An industry in Islamic Economics is required to compete perfectly regardless of its market structure. How to ensure this rule being implemented in reality, however, has been neglected either in literatures or by industry supervisors. This paper is aimed at proposing a systematic procedure to test the industry compliance toward islamic competition rules. The advance of theory and empirics of New Empirical Industrial Organization is used to formulate the procedure. There are two conditions to satisfy for an industry to have an islamic competition. The first and necessary condition is rejecting the Traditional Hypothesis which is based on collutive bahaviour of dominant banks. The second and sufficient condition is, the perfect competition is driven more by the intention of syariah compliance rather than due to the pressure of contestability. Keywords: SCP Paradigm, Perfect Competition, Contestable Market, Traditional Hypothesis, New Empirical Industrial Organization, Islamic Competition, Structural Approach, Nonstructural Approach, Panzar and Rosse Model
Highlights
An industry in Islamic Economics is required to compete perfectly regardless of its market structure
ensure this rule being implemented in reality
This paper is aimed at proposing a systematic procedure to test the industry compliance toward islamic competition rules
Summary
Prinsip mikroekonomi yang menjadi dasar organisasi industri menyatakan bahwa persaingan merupakan keharusan untuk mencapai tingkat kesejahteraan yang maksimal bagi masyarakat, kecuali untuk beberapa kasus khusus seperti monopoli alami. Persaingan sempurna dalam jangka panjang memastikan produk yang dihasilkan akan berada pada titik efisiensi alokatif dan efisiensi produktif tertinggi. Pasar harus diupayakan agar mempunyai atau menerapkan tingkat persaingan yang sesempurna mungkin untuk menghasilkan kinerja industri yang terbaik. Paradigma Struktur-Perilaku dan Kinerja (SCP) merupakan pendekatan umum yang telah banyak digunakan untuk mengkaji hubungan dinamika persaingan suatu industri dengan kinerjanya. Awalnya paradigma ini digunakan untuk industri manufaktur, namun dalam perkembangannya paradigma yang sama juga digunakan untuk industri jasa seperti perbankan. Pada bagian ini akan disajikan pengertian paradigma SCP dan perkembangannya sejalan dengan perkembangan kajian empiris terhadap konsep awalnya
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