Investment Improvement of Agricultural Sector in East Java

Input- Output Analysis

  • Muryani Muryani economic and business faculty Universitas Airlangga
Keywords: ADLI, Agriculture, Industry, Input-Output

Abstract

The Agricultural Demand Led Industrialization (ADLI) strategy can be considered effective because of the dominant amount of East Java land (74.11%) cultivated for the agricultural sector. This study aims to determine the relationship between the agricultural and manufacturing industry sectors; knowing the impact of the “Agricultural Demand Led Industrialization” (ADLI) strategy in the East Java economy; and knowing the elasticity of agricultural investment on output creation, gross value added, and income in East Java. This research uses the Input-Output (IO) analysis technique for all economic sectors in East Java, with an emphasis on the agricultural sector and processing industry in 1995-2010. The empirical results state that the ADLI Strategy has a positive impact on output creation and income in the East Java economy. The level of sensitivity /response from the output, gross value added, and income due to changes in investment value in the agricultural sector is relatively not much different.

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Published
2019-07-03
How to Cite
Muryani, M. (2019). Investment Improvement of Agricultural Sector in East Java. International Journal of Research in Business and Social Science (2147- 4478), 8(4), 215-223. https://doi.org/10.20525/ijrbs.v8i4.303
Section
Articles