scholarly journals The Causality Between Agriculture, Industry, and Economic Growth: Evidence from Indonesia

ETIKONOMI ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 155-168
Author(s):  
Abdul Bashir ◽  
S. Suhel ◽  
A. Azwardi ◽  
Dirta Pratama Atiyatna ◽  
Ichsan Hamidi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Industrial Sector ◽  
Vital Role ◽  
Added Value ◽  
Short Term ◽  
Agricultural Industry ◽  
Vector Error Correction ◽  
Agriculture Sector ◽  
Agriculture Industry

The industry is the current engine of the Indonesian economy over the past three decades; the economic structure in Indonesia has the transformation from the agriculture sector to the industry sector. The objective of this study is to examine the causality between agricultural, industry, and economic growth in Indonesia. By using the vector error correction model (VECM), this research finds that in the long-term, there is directional causality from the industry added value, economic growth on the agricultural added value. Meanwhile, in the short-term, the variable of industry added value and economic growth has the two-way causality. Besides, the agricultural added value can only affect the industrial added value and economic growth in the short-term. These findings support the idea that the agricultural sector plays a vital role in the economy, such as increasing economic growth and growth in other sectors, especially the industrial sector in this case.JEL Classification: F40, L60, O13, O47

scholarly journals Transformasi Struktural di Jawa Timur : Pengaruh Pertumbuhan Ekonomi Sektoral terhadap Kemiskinan

Media Trend ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. 275-282
Author(s):  
Abdul Khafidzin ◽  
Nurul Istifadah
Keyword(s):  
Economic Growth ◽  
Service Sector ◽  
Agricultural Sector ◽  
Industrial Sector ◽  
Economic Sectors ◽  
Equitable Distribution ◽  
Agriculture Sector ◽  
Agriculture Industry ◽  
Selection Of Variables ◽  
Distribution Of Income

Sectoral economic growth affects the level of poverty in the area. High economic growth does not merely reduce poverty. Equitable distribution of income is also a matter that needs to be considered in line with increased economic growth. High economic growth is the process of accumulation of sectoral economic growth that has undergone a structural shift in its journey. Changes in economic structure are marked by a decrease in the contribution of the agricultural sector and an increase in the contribution of the industrial sector, both in gross domestic product (GDP) and in employment. Economic growth needs to be directed towards economic sectors that are effective in reducing poverty and creating equitable distribution of income. The purpose of this study is to answer the question of how the influence of sectoral economic growth on poverty in East Java. For this purpose the panel data regression model is used. The selection of variables is based on research objectives. Agriculture sector GRDP (VP), industrial sector GRDP (VI) and service sector GRDP (VJ) represent sectoral economic growth. The results of the test show an increase in the contribution of the industrial sector effectively reduces poverty. In other words, between the agriculture, industry and services sectors, only the industrial sector has positive and significant parameters for poverty in East Java.

scholarly journals Pengaruh Perubahan Tutupan Hutan Dan Lahan Terhadap Produk Domestik Regional Bruto (Pdrb) Di Sektor Pertanian, Kehutanan Dan Industri : Studi Di Provinsi Lampung

2017 ◽  
Vol 5 (1) ◽  
pp. 61
Author(s):  
Ummi Dienelly ◽  
Samsul Bakri ◽  
Trio Santoso
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Forest Cover ◽  
Agricultural Sector ◽  
Local Level ◽  
Industrial Sector ◽  
Domestic Product ◽  
Agriculture Sector ◽  
Forestry Sector ◽  
National Economic

National economic growth is an aggregate of regional economic growth. Economic growth inboth national and local level is closely related to the performance of the productions of goodsand services, which measured by massive increase in the amount of the Gross Domestic Product(GDP) and Regional Gross Domestic Product (RGDP) for the region. Lampung province’seconomic growth performance is high enough but on the other hand had to be paid by landconversion. This study aims to determine the dynamic of changes in land cover and forest and itsimpact on agriculture, forestry and industrial earnings. Data collected consist of satelitte  imageof lampung province  RGDP in agricultural sector, RGDP in foresty sector, RGDP in industrialsector and population density data. The result showed that there was a significant relationshipbeetwen changes in private forest cover by 11.055 (p= 0.062), rice field by 7.982 (p= 0.082), andpopulation density by -8.676 (p= 0.000) to the RGDP in agricultural sector. RGDP in theforestry sector is affected significantly by the national forest cover by 1.160 (p= 0.00)and other land use by -0.803 (p= 0.061). RGDP in the industrial sector is influenced significantly byprivate forest -7.434 (p= 0.077), and plantation by 5.471 (p= 0.00).Keyword : RGDB agriculture sector, RGDB forestry sector, RGDB industri sector

scholarly journals The Influence of Economic Transformation From The Agricultural Sector To The Industrial Sector To Economic Growth In Indonesia

2018 ◽  
Vol 1 (1) ◽  
pp. 6-11
Author(s):  
Abdulrahman Taresh Abdullah ◽  
Mohammad Wasil
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Industrial Sector ◽  
Economic Transformation ◽  
Series Data ◽  
Correction Model ◽  
Vector Error Correction ◽  
Industrial Sectors ◽  
Vector Error

The purpose of this research is the research and development of the industrial sector's economy to the agricultural sector, as well as the influence of agricultural and industrial sectors on economic growth in Indonesia. The data used is time series data, 1960-2015. The method used in this research is Vector Error Correction Model (VECM). From the estimation results, it is concluded that the economic growth rate and the industrial sector negatively affect the agricultural sector, it can be said that the increasing economic growth achieved in Indonesia has increased the industrial sector and lower the agricultural sector. While the results of research that the agricultural sector negatively affect the economic growth while the industrial sector positively affects economic growth, in the sense that the agricultural sector has a bad contribution in economic growth in Indonesia.

scholarly journals The National Banking Crisis in Applied Early Warning System (EWS)

2018 ◽  
Vol 1 (1) ◽  
pp. 37-45
Author(s):  
Nadia Sasri W
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Warning System ◽  
Industrial Sector ◽  
Series Data ◽  
Correction Model ◽  
Vector Error Correction ◽  
Industrial Sectors ◽  
Vector Error

The purpose of this research is the research and development of the industrial sector's economy to the agricultural sector, as well as the influence of agricultural and industrial sectors on economic growth in Indonesia. The data used is time series data, 1960-2015. The method used in this research is Vector Error Correction Model (VECM). From the estimation results, it is concluded that the economic growth rate and the industrial sector negatively affect the agricultural sector, it can be said that the increasing economic growth achieved in Indonesia has increased the industrial sector and lower the agricultural sector. While the results of research that the agricultural sector negatively affect the economic growth while the industrial sector positively affects economic growth, in the sense that the agricultural sector has a bad contribution in economic growth in Indonesia.

Role of Education in Economic Growth of Pakistan: A Sectoral Analysis

2020 ◽  
Vol 4 (3) ◽  
pp. 1-34
Author(s):  
Faiza Hassan ◽  
Hafsa Hina ◽  
Abdul Qayyum ◽  
Anwar Hussain
Keyword(s):  
Economic Growth ◽  
Tertiary Education ◽  
Negative Relationship ◽  
Industrial Sector ◽  
Services Sector ◽  
Agriculture Sector ◽  
Distributed Lag ◽  
Agriculture Industry ◽  
The Impact ◽  
Positive Effect

Education and economic growth nexus is one of the abundantly researched topics in economics. The social returns of education in addition to its private returns makes it public good and justifies the use of public funds. While most of the studies conclude the positive relationship between the two, examples also exist of the negative relationship. However, there is a gap in the literature to find and compare the effect of education on the growth of agriculture, industry and services sector separately. This paper is particularly aimed to analyze the impact of different levels of education of employed persons on level and growth of national output, agriculture, industry & services sector output in Pakistan. The method of analysis is the autoregressive distributed lag model (ARDL). Each level of education is found to have a positive effect on the output per employed person both in the short-run and long-run except for agriculture sector. In the agriculture sector, each education level is negatively associated. The deeper analysis showed that the greater negative effect of employment evades the positive effect of education in the agriculture sector. The comparison of different sectors shows that primary education contributes more to the industrial sector. While the contribution of the secondary & tertiary education is highest in the services sector.  

The relationship between energy consumption and economic growth: New evidence from Greece

2021 ◽  
pp. 131-153
Author(s):  
Antonia Gkergki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Gdp Per Capita ◽  
Short Term ◽  
Vector Error Correction ◽  
Per Capita ◽  
Econometric Tests ◽  
The Government ◽  
New Research ◽  
The Relationship

This paper examines the relationship between the energy consumption and economic growth from 1968 to 2019 in Greece, by employing the vector error-correction model estimation. A series of econometric tests are employed concerning the stationary of the data, and the co-integration and the relationship among the variables during the long- and short-term. The em-pirical results suggest that there is no bidirectional relationship between economic growth and energy consumption. More specifically, GDP per capita does not affect the energy consump-tion of the three primary sources either in the long-term or the short-term. In other words, the economic crisis and its implications for GDP do not affect energy consumption, and they are not responsible for the considerable decrease in energy sources' consumption. On the other hand, the energy consumption of oil and coal negatively affect the GDP per capita. These re-sults are different from previous studies' conclusions for Greece; this is because the never been experienced before. These findings raise new research questions and also show the limi-tations of the Greek market, as it is regulated and controlled by the government.

scholarly journals Effectiveness of Monetary Policy Instruments on Economic Growth in Jordan Using Vector Error Correction Model

2017 ◽  
Vol 9 (11) ◽  
pp. 194
Author(s):  
Rami Obeid ◽  
Bassam Awad
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Policy Instruments ◽  
Short Term ◽  
Correction Model ◽  
Vector Error Correction ◽  
Real Gdp ◽  
Vector Error ◽  
Effect Of Monetary Policy

The global financial crisis emphasized the important role of the prudent monetary policy in supporting economic growth through maintaining price stability. The monetary policy operational framework that was designed in 2008 was updated to include more instruments for managing monetary policy learning from the crisis lessons. Several studies analyzed various dimensions related to economic growth in Jordan such as Abdul-Khaliq, Soufan, and Abu Shihab (2013) and Assaf (2014), there were no studies that investigated the effect of monetary policy on economic growth in Jordan, at least recently, however. The study aims at measuring the effect of monetary policy instruments on the performance of Jordanian economy. Using quarterly data covering the period (2005-2015), an econometric model was examined using Vector Error Correction Model to assess the impact of monetary policy instruments on economic growth. The foremost advantage of VECM is that it has a nice interpretation of long-term and short-term equations. The results showed the existence of positive long-term and short-term effects of monetary policy instruments on the growth of real GDP. The model included three monetary policy instruments besides money supply. They are required reserve ratio, rediscount rate and overnight interbank loan rates as independent variables, and the real GDP growth as a dependent variable. The stationarity of the model time series was addressed. In addition, the stability of the model was tested using stability diagnostics tools. The results showed also an existence of inverse relationship between rediscount rate and economic growth in Jordan over both long and short terms.

scholarly journals Staffing support management for regional economic growth in the context of global challenges

2021 ◽  
Vol 128 ◽  
pp. 05006
Author(s):  
Vitaly Skantsev ◽  
Tatyana Gerashchenkova
Keyword(s):  
Economic Growth ◽  
Industrial Sector ◽  
Added Value ◽  
Regional Economic Growth ◽  
Industrial Enterprises ◽  
Potential Development ◽  
Formation Conditions ◽  
Labor Resources ◽  
High Level ◽  
Regional Authorities

The article defines the formation conditions of regional development vectors on the basis of approved federal documents and the opinion of regional authorities on the expediency of applying efforts to certain sectors of the economy. The authors indicate the necessity of focusing on the development of the industrial sector of the economy. This is justified, first of all, by the high level of the added value of industrial products. The industrial sector is also pointed out as a factor of intellectualization of the consumer sphere and a driver of economic growth. At the same time, staff potential is highlighted as one of the most important resource components. The results of the study indicate the participants in the formation of labor resources and the problems of their interaction, the shortcomings of staffing support at modern industrial enterprises. The article contains the mechanisms that are necessary for managing the processes of staff potential development, including the ones that take into account the prospective needs in the conditions of industrial transformations and the young people’s understanding of their purpose in economic activity. The emphasis is placed on the complexity and consistency of the actions taken. At the same time, the authors provide a list of the most significant professional skills and promising professions for both large manufacturers and small and medium-sized businesses.

scholarly journals Does the Declining Share of Agricultural Output in GDP Indicate Structural Transformation? The Case of Ethiopia

2019 ◽  
Vol 11 (5(J)) ◽  
pp. 54-68
Author(s):  
Adisu Abebaw Degu ◽  
Admassu Tesso Huluka
Keyword(s):  
Structural Transformation ◽  
Rural Areas ◽  
Demographic Transition ◽  
Service Sector ◽  
Agricultural Sector ◽  
Primary Source ◽  
Industrial Sector ◽  
Agricultural Output ◽  
Agriculture Sector ◽  
Relative Decline

It is not uncommon that different government officials and practitioners infer the fallingagricultural share in GDP to the underpinning of structural transformation in an economy. By using variousstudies result and a time series of data spanning from 1981 up to 2017, this paper investigated, whetherthe declining share of agricultural output in GDP is indicating structural transformation or not in Ethiopianeconomy. The study showed that the service is the fastest-growing sector in Ethiopia, and it covers morethan 40% of GDP. The share of agriculture sector was 45% of GDP until 2011, while the industry sector hasbeen stagnating. Thus, it shows how the falling share of the agriculture sector in GDP is being supersededby the service sector. Empirical works also reveal that even though the share of the agricultural sector inGDP is falling, it is the primary source for the overall economic growth of Ethiopia. The share of the ruralpopulation has decreased from 89 percent in 1981 to 80% in the year 2017. So the vast population of thecountry is living in rural areas where agricultural-based activities are common. Lack of labor shift from theagricultural sector to the industrial sector can also be attributed to the insufficient expansion of themodern industrial sector to absorb the growing force labor. Furth more, the demographic transition alsoshowed a relative decline. Since structural transformation involves several interrelated processes, thedeclining share of agriculture output to GDP alone cannot explain the prevalence of structural change; theother processes like; industrialization, urbanization, and demographic transition need to be scrutinized

scholarly journals PENGARUH EKSPOR TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2018 ◽  
Vol 5 (2) ◽  
pp. 10-31
Author(s):  
Dara Resmi Asbiantari ◽  
Manuntun Parulian Hutagaol ◽  
Alla Asmara
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Capital Investment ◽  
Industrial Sector ◽  
Ordinary Least Squares ◽  
Short Term ◽  
Capital Goods ◽  
Agricultural Export ◽  
The Government

Economic growth is a matter of the economy in the long term and is influenced by various factors. This study aimed to analyze the effect of the agricultural export, industrial export, mining export, import of capital goods, government spending and gross fixed capital formation to economic growth of Indonesia. The analytical method used was Ordinary Least Squares (OLS) with Cochrane-Orcutt method. This study uses secondary data quarterly time series from 2000 Q1 to 2016 Q1 which is obtained from the Ministry of Trade, the Central Bureau of Statistics, Bank Indonesia and the Capital Investment Coordinating Board. The results showed that on the first model to see the effect of the aggregate exports on economic growth show that imports of capital goods have a significant influence in the short term to economic growth. While in the long term, the variables that have a significant impact on economic growth is GFCF. While the second model to see the role of exports by sector to economic growth getting results that exports in the industrial sector has a significant influence both in the short-term and long-term to economic growth. It concluded that outward looking policies has an effective impact to be applied in Indonesia if the Government to develop exports in the industrial sector.

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