Tag: jakarta

SPATIAL STRUCTURE OF THE ISLAND ECONOMY OF INDONESIA : A NEW HYBRID PROCEDURE FOR GENERATION INTER-REGIONAL INPUT-OUTPUT TABLES

Muchdie, Muchdie

The research reported in this monograph had two main objectives. The first objective was to assess the relevance, feasibility and practicality of modeling the spatial structure of a developing island economy using a hybrid procedure to generate inter-regional input-output tables. The second objective was to apply the procedure to study the spatial structure of the island economy of Indonesia. The model proved useful for analyzing the spatial structure of the island economy of Indonesia as well as the impact of policy simulations. It offers five further contributions : (1) an evaluation of the current methods used to construct single-region and inter-regional input-output tables in Indonesia; (2) the development of an appropriate hybrid procedure to construct both single-region and inter-regional input-output tables for an island economy in a developing country; (3) an application of the inter-regional input-output model to analyze the spatial structure of Indonesia’s island economy; (4) developmental methods of validating inter-regional input-output tables; and (5) analysis of the sectoral, spatial and spatial-sector significance of an island economy.

The research reported in this monograph had two main objectives. The first objective was to assess the relevance, feasibility and practicality of modeling the spatial structure of a developing island economy using a hybrid procedure to generate inter-regional input-output tables. The second objective was to apply the procedure to study the spatial structure of the island economy of Indonesia. The model proved useful for analyzing the spatial structure of the island economy of Indonesia as well as the impact of policy simulations. It offers five further contributions : (1) an evaluation of the current methods used to construct single-region and inter-regional input-output tables in Indonesia; (2) the development of an appropriate hybrid procedure to construct both single-region and inter-regional input-output tables for an island economy in a developing country; (3) an application of the inter-regional input-output model to analyze the spatial structure of Indonesia’s island economy; (4) developmental methods of validating inter-regional input-output tables; and (5) analysis of the sectoral, spatial and spatial-sector significance of an island economy.

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PEMODELAN STRUKTUR RUANG EKONOMI INDONESIA: PENERAPAN PROSEDUR GIRIOT UNTUK MENYUSUN TABEI INPUT-OUTPUT ANTAR DAERAH

Muchdie, Muchdie

This paper provides and discusses empirical application of the GIR10T (Generation of Inter-Regional Input-Output Tables) procedure; a hybrid technique in constructing regional and inter-regional input-output tables designed for island economy. Regional definitions and sectoral classifications are firstly discussed, then followed by description of data and their sources. Phase by phase application of the procedure is then provided and discussed. The validity of the model is examined by inspecting the proportion of regional imports, the pattern of inter-regional trade flows, .the stability of multipliers, as well as by conducting sensitivity analysis. Finally, some notes regarding the problems and the prospects of the procedure are also stressed.

This paper provides and discusses empirical application of the GIR10T (Generation of Inter-Regional Input-Output Tables) procedure; a hybrid technique in constructing regional and inter-regional input-output tables designed for island economy. Regional definitions and sectoral classifications are firstly discussed, then followed by description of data and their sources. Phase by phase application of the procedure is then provided and discussed. The validity of the model is examined by inspecting the proportion of regional imports, the pattern of inter-regional trade flows, .the stability of multipliers, as well as by conducting sensitivity analysis. Finally, some notes regarding the problems and the prospects of the procedure are also stressed.

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TEKNIK HIBRIDA DALAM PENYUSUNAN TABEL INPUT-OUTPUT ANTAR DAERAH: SEBUAH PROSEDUR UNTUK EKONOMI KEPULAUAN

Muchdie, Muchdie

This paper proposes a new hybrid procedure for constructing inter-regional input-output model for an island economy, with special reference to Indonesia. Tlteoretical framework of input-output model concerned with regional dimension is firstly discussed. Hybrid techniques for constructing inter-regional input-output table are then critically reviewed. Four important considerations in which the procedure are based upon are stressed before the proposed procedure is fidly described.

This paper proposes a new hybrid procedure for constructing inter-regional input-output model for an island economy, with special reference to Indonesia. Tlteoretical framework of input-output model concerned with regional dimension is firstly discussed. Hybrid techniques for constructing inter-regional input-output table are then critically reviewed. Four important considerations in which the procedure are based upon are stressed before the proposed procedure is fidly described.

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THE CONTRIBUTION OF TECHNOLOGY ON INDONESIAN ECONOMY:
NATIONAL, SECTORAL AND SPATIAL PERSPECTIVES.

Muchdie, Muchdie

This paper reports a research that aimed to analysis the contribution of
technology on Indonesian economy at national, sectoral and spatial
perspectives. Growth accounting decomposition technique was
employed to calculate the contribution of factors production in the
economy. The results showed that, on average, technology
contribution to Indonesian economy, in term of TFP growth, was too
small (8.79%) if compared to the TFP growth of other countries,
especially in the developed countries. Even if compared with the
contribution of other factors contribution, such as capital (74.1%) and
labor (17.1%). Sectorally, the contribution of technology on
Indonesian economy varied among sector. The highest and gave
positive contribution were Other Services (72.6%) and Manufacturing
(52.6%). The lowest and gave negative contribution were Agriculture
(-55.1%) and Financial, Rental and Corporate Services (-38.7%).
Spatially, the contribution of technology on Indonesian economy also
varied. The highest and gave positive contribution were the Island of
Java (47.9%) and Bali-Nusa Tenggara Island (30.4%). The lowest and
gave negative contributions were Maluku-Papua Islands (-95.4%) and
Kalimantan Island (-24.7%)

This paper reports a research that aimed to analysis the contribution of
technology on Indonesian economy at national, sectoral and spatial
perspectives. Growth accounting decomposition technique was
employed to calculate the contribution of factors production in the
economy. The results showed that, on average, technology
contribution to Indonesian economy, in term of TFP growth, was too
small (8.79%) if compared to the TFP growth of other countries,
especially in the developed countries. Even if compared with the
contribution of other factors contribution, such as capital (74.1%) and
labor (17.1%). Sectorally, the contribution of technology on
Indonesian economy varied among sector. The highest and gave
positive contribution were Other Services (72.6%) and Manufacturing
(52.6%). The lowest and gave negative contribution were Agriculture
(-55.1%) and Financial, Rental and Corporate Services (-38.7%).
Spatially, the contribution of technology on Indonesian economy also
varied. The highest and gave positive contribution were the Island of
Java (47.9%) and Bali-Nusa Tenggara Island (30.4%). The lowest and
gave negative contributions were Maluku-Papua Islands (-95.4%) and
Kalimantan Island (-24.7%)

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ECONOMIC GROWTH, HUMAN DEVELOPMENT AND
GLOBAL COMPETITIVENSS

Muchdie, Muchdie

This paper analysis direct and indirect impact of economic growth on global competitiveness,
with human development as moderator variable. Cross-section data on economic growth, human
development and global competitiveness indices were collected from 123 countries and
employed in a path analysis model. The results show that economic growth had positive and
significant direct impact on global competitiveness. Economic growth had negative and
significant direct impact on human development. Meanwhile, human development had positive
and significant direct impact on global competitiveness. Indirectly, through moderator variable
human development, economic growth had negative and significant impact on global
competitiveness. Implications of this finding were that economic growth no longer a single
important factor in development indicator for achieving global competitiveness. It is then
suggested that human development sustainably be promoted in order to make nations globally
competitive.

This paper analysis direct and indirect impact of economic growth on global competitiveness,
with human development as moderator variable. Cross-section data on economic growth, human
development and global competitiveness indices were collected from 123 countries and
employed in a path analysis model. The results show that economic growth had positive and
significant direct impact on global competitiveness. Economic growth had negative and
significant direct impact on human development. Meanwhile, human development had positive
and significant direct impact on global competitiveness. Indirectly, through moderator variable
human development, economic growth had negative and significant impact on global
competitiveness. Implications of this finding were that economic growth no longer a single
important factor in development indicator for achieving global competitiveness. It is then
suggested that human development sustainably be promoted in order to make nations globally
competitive.

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KETERKAITAN SEKTOR-SEKTOR PARIWISATA DALAM PEREKONOMIAN BALI: ANALISIS INPUT-OUTPUT

Muchdie, Muchdie

Employing the concept of black-box system operasionalied by input-output model, this paper analyses linkages and the role of tourism sectors in the economy of Bali. After explaining the method of analysis, an example of black box system consist of input, proses and output of tourism sectors is presented based on the input-output table of Bali. This paper then discusses linkages: direct, open and closed linkages of tourism sectors in the economy of Bali. Disaggregated output, income and import multipliers of these sectors are also provided to indicate which sectors involved. Summary and conclusion are finally provided at the end of the paper.

Employing the concept of black-box system operasionalied by input-output model, this paper analyses linkages and the role of tourism sectors in the economy of Bali. After explaining the method of analysis, an example of black box system consist of input, proses and output of tourism sectors is presented based on the input-output table of Bali. This paper then discusses linkages: direct, open and closed linkages of tourism sectors in the economy of Bali. Disaggregated output, income and import multipliers of these sectors are also provided to indicate which sectors involved. Summary and conclusion are finally provided at the end of the paper.

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DOES PHILIPS CURVE EXIST? EVIDENCE FROM ALL OVER THE WORLD

Muchdie, Muchdie

This paper provides evidences that the Philips curve exists in the world’s economy. The
Philips curve depicted a negative correlation between the rate of inflation and
unemployment rate. This dilemma has been a big problem faced by any government.
Inflation cannot be eliminated without raising unemployment, at least for some time and
moderate unemployment cannot be cut sharply without the risk of raising inflation. It was
empirically evidence that this curve exist in the short-run. Inflation cannot be reduced
without creating a recession. Using cross-section data on inflation rate and rate of
unemployment from 182countries all over the world: 49 countries in Asia, 52 countries in
Africa, 39 countries in Europe and 29 countries in America, this paper proved that there
was a negative correlation between the rate of inflation and unemployment rate. It means
that the Philipscurve do exists in economy, but the relationship between them was not
statistically significant.

This paper provides evidences that the Philips curve exists in the world’s economy. The
Philips curve depicted a negative correlation between the rate of inflation and
unemployment rate. This dilemma has been a big problem faced by any government.
Inflation cannot be eliminated without raising unemployment, at least for some time and
moderate unemployment cannot be cut sharply without the risk of raising inflation. It was
empirically evidence that this curve exist in the short-run. Inflation cannot be reduced
without creating a recession. Using cross-section data on inflation rate and rate of
unemployment from 182countries all over the world: 49 countries in Asia, 52 countries in
Africa, 39 countries in Europe and 29 countries in America, this paper proved that there
was a negative correlation between the rate of inflation and unemployment rate. It means
that the Philipscurve do exists in economy, but the relationship between them was not
statistically significant.

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STRUKTUR PRODUKSI DAN POLA KONSUMSI PADA BUDIDAYA JAGUNG DAN KEDELAI: ANALISIS INPUT-OUTPUT

Muchdie, Muchdie

Employing the Indonesian input-output tables both as data sources and as method of analysis, this paper discusses production structure, consumption pattern and the role of maize and soybean in the Indonesian economy. The production structure is discussed by showing the structure of input in producing these commodities; the consumption pattern is indicated by the pattern of output distribution; while the role of these commodities in the national economy is indicated by input-output multipliers. Finally, concluding remarks are provided at the end of the paper.

Employing the Indonesian input-output tables both as data sources and as method of analysis, this paper discusses production structure, consumption pattern and the role of maize and soybean in the Indonesian economy. The production structure is discussed by showing the structure of input in producing these commodities; the consumption pattern is indicated by the pattern of output distribution; while the role of these commodities in the national economy is indicated by input-output multipliers. Finally, concluding remarks are provided at the end of the paper.

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SPATIAL VARIATIONS IN TECHNICAL EFFICIENCY AND RETURN TO SCALE IN THE
INDONESIAN ECONOMY

Muchdie, Muchdie

This paper reports an analysis of technical efficiency and returns to scale in the Indonesia economy
during 1983-2013 with special attention to the spatial dimension of the economy. The study focused
on seven group of islands: Sumatera (10 Provinces), Java (6 Provinces), Kalimantan (4 Provinces),
Sulawesi (6 Provinces), Bali-Nusa Tenggara (3 Provinces), and Maluku (2 Provinces) and Papua (2
Provinces). Cobb Douglass production function was employed to calculate technical efficiency and
return to scale using regression analysis. Time series data during 1983-2013 on Gross Regional
Domestic Bruto, Capital Stock, and Employment were collected from many sources at the National
Statistics Agency. The results show that technical efficiency in production varies among regions.
Provinces with coefficients of technical efficiency below that at national level exhibited increasing
return to scale. Otherwise, the Provinces with coefficients of technical efficiency above that at
national level exhibited decreasing return to scale.

This paper reports an analysis of technical efficiency and returns to scale in the Indonesia economy
during 1983-2013 with special attention to the spatial dimension of the economy. The study focused
on seven group of islands: Sumatera (10 Provinces), Java (6 Provinces), Kalimantan (4 Provinces),
Sulawesi (6 Provinces), Bali-Nusa Tenggara (3 Provinces), and Maluku (2 Provinces) and Papua (2
Provinces). Cobb Douglass production function was employed to calculate technical efficiency and
return to scale using regression analysis. Time series data during 1983-2013 on Gross Regional
Domestic Bruto, Capital Stock, and Employment were collected from many sources at the National
Statistics Agency. The results show that technical efficiency in production varies among regions.
Provinces with coefficients of technical efficiency below that at national level exhibited increasing
return to scale. Otherwise, the Provinces with coefficients of technical efficiency above that at
national level exhibited decreasing return to scale.

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THE IMPACT OF TECHNOLOGICAL PROGRESS ON INDONESIA’S
GLOBAL COMPETITIVENESS: A TIME SERIES PATH ANALYSIS

Muchdie, Muchdie

This paper analysis direct and indirect impacts of technological progress on Indonesia’s global
competitiveness, with economic growth and human development as moderator variables. Time
series data on technological progress, economic growth, human development and global
competitiveness of Indonesia were collected many sources and employed in a path analysis
model. The results showed that technological progress had a negative and significant direct
impact on the global competitiveness. Technological progress had also negative and significant
direct impact on human development. Furthermore, technological progress had a positive and
significant direct impact on economic growth, and economic growth had positive impact on
human development and negative impact on global competitiveness. Indirectly, the impacts of
technological progress on global competitiveness varied depend on the path. At P43-P31, indirect
impact through human development, the impact was negative and significant. At P43-P32-P21,
indirect impact through human development and economic growth, the impact was positive and
significant. Finally, at P42-P21, indirect impact through economic growth, the impact was
negative and significant. These findings confirm other research by Author using cross-nations
data.

This paper analysis direct and indirect impacts of technological progress on Indonesia’s global
competitiveness, with economic growth and human development as moderator variables. Time
series data on technological progress, economic growth, human development and global
competitiveness of Indonesia were collected many sources and employed in a path analysis
model. The results showed that technological progress had a negative and significant direct
impact on the global competitiveness. Technological progress had also negative and significant
direct impact on human development. Furthermore, technological progress had a positive and
significant direct impact on economic growth, and economic growth had positive impact on
human development and negative impact on global competitiveness. Indirectly, the impacts of
technological progress on global competitiveness varied depend on the path. At P43-P31, indirect
impact through human development, the impact was negative and significant. At P43-P32-P21,
indirect impact through human development and economic growth, the impact was positive and
significant. Finally, at P42-P21, indirect impact through economic growth, the impact was
negative and significant. These findings confirm other research by Author using cross-nations
data.

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