Main Article Content

Abstract

This study aims to analyze the performance of the agricultural sector on the structure of the regional economy in Indonesia. The data used is secondary data in the form of the 2016 Indonesian Inter-Regional Input-Output Table, classified for 52 sectors and 34 provinces. Contribution analysis in the IRIO approach is used to answer research objectives. The research results show that the agricultural sector in producing output, allocating input to other sectors, providing final demand, absorbing the output of other sectors, and forming primary input in each region in Indonesia has different contributions. These different contributions are adjusted to the resource potential of each region. In particular, the agricultural sector in North Maluku Province has a significant role in the economic structure of North Maluku. The North Maluku agricultural sector has a contribution in producing output, providing final demand, absorbing intermediate inputs, and forming primary inputs that are higher than the average contribution of other provinces in Indonesia.

Keywords

Agricultural Sector Economic growth IRIO Regional Economic Structure

Article Details

How to Cite
Saban, A. B., Sahara, & Falatehan, A. F. (2024). Economic Transformation: How Does the Agricultural Sector Performance in Indonesia’s Regional Economic Structure?. Jurnal Ekonomi Pembangunan, 21(2), 175–190. https://doi.org/10.29259/jep.v21i2.22744

References

  1. Ableeva, A. M., Salimova, G. A., Rafikova, N. T., Fazrahmanov, I. I., Zalilova, Z. A., Lubova, T. N., ... & Hazieva, A. M. (2019). Economic evaluation of the efficiency of supply chain management in agricultural production based on multidimensional research methods. International Journal of Supply Chain Management, 8(1), 328.
  2. Ahmad, F., Yudi, F., & Hairin, F. (2023). Analysis of the Agricultural Sector’s Contribution to Economy of Central Kalimantan Province, Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 138(6), 73–81. https://doi.org/10.18551/rjoas.2023-06.11
  3. Ameh, O. E., Sunday, O. A., Baajon, M. A., & Chukwuemeka, N. J. (2017). An Empirical Analysis of the effect of Agricultural Input on Agricultural Productivity in Nigeria. International Journal of Agricultural Science and Food Technology, 077–085. https://doi.org/10.17352/2455-815x.000026
  4. Anderson, K., & Ponnusamy, S. (2023). Structural transformation away from agriculture in growing open economies. Agricultural Economics (United Kingdom), 54(1), 62–76. https://doi.org/10.1111/agec.12745
  5. Andriansyah, Nurwanda, A., & Rifai, B. (2023). Structural Change and Regional Economic Growth in Indonesia. Bulletin of Indonesian Economic Studies, 59(1), 91–117. https://doi.org/10.1080/00074918.2021.1914320
  6. Arias, D., Vieira, P. A., Contini, E., Farinelli, B., & Morris, M. (2017). Agriculture Productivity Growth in Brazil Recent trends and future prospects (No. 32202). The World Bank Group.
  7. Awaliyyah, E. Z., Chen, S.-E., Anindita, R., & Suhartini. (2020). Analysis of Structural Transformation of Labor from Agriculture to Non-Agriculture in Asia. Agricultural Socio-Economics Journal, 20(4), 335–341. https://doi.org/10.21776/ub.agrise.2020.020.4.9
  8. Bachewe, F. N., Berhane, G., Minten, B., & Taffesse, A. S. (2018). Agricultural Transformation in Africa? Assessing the Evidence in Ethiopia. World Development, 105, 286–298. https://doi.org/10.1016/j.worlddev.2017.05.041
  9. Baumüller, H., Ikpi, U., Jumpah, E. T., Kamau, G. M., Kergna, A. O., Mose, L., Nientao, A., Omari, R., Phillip, D., & Salasya, B. D. (2022). Documenting the digital transformation of African agriculture: Use and impact of digital technologies among agricultural intermediaries (No. 214). ZEF Working Paper Series. http://hdl.handle.net/10419/278162
  10. BPS Indonesia. (2023). Produk Domestik Bruto Indonesia Menurut Lapangan Usaha 2000-2022. Badan Pusat Statistik Indonesia.
  11. Daryanto, A., & Hafizrianda, Y. (2010a). Aplikasi Input-Output & Social Accounting Matrix untuk Pembengunan Ekonomi Daerah (S. S. Syarifah & A. Oktariani, Eds.; cetakan pertama). IPB Press.
  12. Daryanto, A., & Hafizrianda, Y. (2010b). Model-Model Kuantitatif untuk Perencanaan Pembangunan Ekonomi Daerah: Konasep dan Aplikasi (S. S. Syarifah & A. Oktariani, Eds.; Cetakan Pertama). IPB Press.
  13. Deininger, K., Jin, S., & Ma, M. (2022). Structural Transformation of the Agricultural Sector In Low-and Middle-Income Economies. Annual Review of Resource Economics, 14, 221–241. https://doi.org/10.1146/annurev-resource-111820
  14. Dewi, E. Y., Yuliani, E., & Rahman, B. (2022). Analisis Peran Sektor Pertanian terhadap Pertumbuhan Perekonomian Wilayah. Jurnal Kajian Ruang, 2(2), 229–248. https://doi.org/dx.doi.org/10.30659/jkr.v2i2.20961
  15. Donati, F., & Tukker, A. (2022). Environmental Pressures and Value Added Related to Imports and Exports of the Dutch Agricultural Sector. Sustainability, 14(10), 6057. https://doi.org/10.3390/su14106057
  16. Donovan, K. (2021). The Equilibrium Impact of Agricultural Risk on Intermediate Inputs and Aggregate Productivity. Review of Economic Studies, 88(5), 2275–2307. https://doi.org/10.1093/restud/rdaa084
  17. Elfira, E., Silvia, V., & Nasir, M. (2022). The Effect of Farmer’s Export, Import, and Exchange Rate on Value-Added of Agricultural Sector in Aceh Province, Indonesia. International Journal of Finance, Economics and Business, 1(2), 91–102. https://doi.org/10.56225/ijfeb.v1i2.24
  18. Ferreira, V., Almazán-Gómez, M. Á., Nechifor, V., & Ferrari, E. (2022). The role of the agricultural sector in Ghanaian development: a multiregional SAM-based analysis. Journal of Economic Structures, 11(1), 1-27. https://doi.org/10.1186/s40008-022-00265-9
  19. Gong, B. (2018). Agricultural reforms and production in China: Changes in provincial production function and productivity in 1978–2015. Journal of Development Economics, 132, 18–31. https://doi.org/10.1016/j.jdeveco.2017.12.005
  20. Jannah, M., & Junaidi, E. (2022). Linkages between Sectors and Regions in the Aceh Economy. Jurnal Ekonomi Pembangunan, 20(2), 205–224. https://doi.org/10.29259/jep.v20i218492
  21. Junarti, & Yasin, M. (2023). Konsep Industrialisasi Dan Transformasi Struktural Di Indonesia. Jurnal Mahasiswa, 5(2), 270–277. https://doi.org/10.51903/jurnamahasiswa.v5i2
  22. Katti, S., Pratiwi, D., & Setiahadi, R. (2019). Klassen Typology Approach for Analysis of the Role of Competitiveness Agricultural Sector. IOP Conference Series: Earth and Environmental Science, 347(1). https://doi.org/10.1088/1755-1315/347/1/012106
  23. Kozlovskyi, S., Mazur, H., Vdovenko, N., Shepel, T., & Kozlovskyi, V. (2018). Modeling and forecasting the level of state stimulation of agricultural production in Ukraine based on the theory of fuzzy logic. Montenegrin Journal of Economics, 14(3), 37–53. https://doi.org/10.14254/1800-5845/2018.14-3.3
  24. Le, T. H., Quang, T. N., Bui, T., & Thi, H. N. (2022). Structure of Agricultural, Forestry and Fishery Sector in the Vietnam Economy: An Input – Output Analysis. Journal of Accounting, Business and Finance Research, 14(1), 8–18. https://doi.org/10.55217/102.v14i1.496
  25. Liao, J., & Wang, W. (2019). Intermediate Inputs and Cross-Country Productivity Differences. Economics Letters, 176, 64–67. https://doi.org/10.1016/j.econlet.2018.12.038
  26. Liu, D., Zhu, X., & Wang, Y. (2021). China’s agricultural green total factor productivity based on carbon emission: An analysis of evolution trend and influencing factors. Journal of Cleaner Production, 278, 123692. https://doi.org/10.1016/j.jclepro.2020.123692
  27. Li, W., Wei, X., Zhu, R., & Guo, K. (2019). Study on factors affecting the agricultural mechanization level in China based on structural equation modeling. Sustainability, 11(1), 51. https://doi.org/10.3390/su11010051
  28. Loizou, E., Karelakis, C., Galanopoulos, K., & Mattas, K. (2019). The role of agriculture as a development tool for a regional economy. Agricultural Systems, 173, 482–490. https://doi.org/10.1016/j.agsy.2019.04.002
  29. Mbotiji, F., Oumar, S. B., & Egwu, B. M. J. (2023). Agricultural Value Added and Economic Development in the CEMAC Zone. Law and Economy, 2(9), 1–9. https://doi.org/10.56397/le.2023.09.01
  30. Meyer, D. F. (2019, October). An Assessment Of The Importance Of The Agricultural Sector On Economic Growth And Development In South Africa. In Proceedings of International Academic Conferences (No. 9912288). International Institute of Social and Economic Sciences. https://doi.org/10.20472/iac.2019.052.041
  31. Miller, R. E., & Blair, P. D. (2009). Input-Output Analysis Foundations and Extensions (second edition). Cambridge University Press.
  32. Mrówczyńska-Kamińska, A., & Baer-Nawrocka, A. (2018). Creating and Allocating the Supply of Agri-Food Products in European Union Countries. Journal of Agribusiness and Rural Development, 49(3), 309–320. https://doi.org/10.17306/j.jard.2018.00431
  33. Mundia, C. W., Secchi, S., Akamani, K., & Wang, G. (2019). A Regional Comparison of Factors Affecting Global Sorghum Production: The Case of North America, Asia and Africa’s Sahel. Sustainability, 11(7), 2135. https://doi.org/10.3390/su11072135
  34. Nasedkina, T. I., Chernykh, A. I., & Molchanova, L. A. (2023). Innovative platform for economic transformation agricultural sector of the Russian economy. E3S Web of Conferences, 449, 09016. https://doi.org/10.1051/e3sconf/202344909016
  35. Opitz, I., Berges, R., Piorr, A., & Krikser, T. (2016). Contributing to food security in urban areas: differences between urban agriculture and peri-urban agriculture in the Global North. Agriculture and Human Values, 33(2), 341–358. https://doi.org/10.1007/s10460-015-9610-2
  36. Pasara, M. T., & Garidzirai, R. (2020). Causality effects among gross capital formation, unemployment and economic growth in South Africa. Economies, 8(2), 26. https://doi.org/10.3390/ECONOMIES8020026
  37. Salimova, G., Ableeva, A., Lubova, T., Zalilova, Z., & Sharafutdinov, A. (2020). The Role of Agriculture in Gross Added Value. Montenegrin Journal of Economics, 16(1), 183–191. https://doi.org/10.14254/1800-5845/2020.16-1.12
  38. Sarajwati, M. A. K., Aini, F. A. N., Setiacahyandari, K. H., Dairina, I., & Dewi, K. A. (2022). Analysis of the Dynamics of Labor Absorption in West Sumatra Province in 2018-2020. Jurnal Pendidikan Ilmu Sosial, 32(2), 226–247. https://doi.org/doi.org/10.23917/jpis.v32i2.20367
  39. Stoycheva, I. (2023). Place and role of the agricultural sector in the national and regional economic structure. SHS Web of Conferences, 176, 03007. https://doi.org/10.1051/shsconf/202317603007
  40. Suh, D. H., & Moss, C. B. (2021). Examining the input and output linkages in agricultural production systems. Agriculture (Switzerland), 11(1), 1–13. https://doi.org/10.3390/agriculture11010054
  41. Word Bank. (2016). Indonesia Economic Quarterly Pressures Easing.
  42. Xie, H., Huang, Y., Chen, Q., Zhang, Y., & Wu, Q. (2019). Prospects for agricultural sustainable intensification: A review of research. Land, 8(11), 157. https://doi.org/10.3390/land8110157

Similar Articles

1 2 3 > >> 

You may also start an advanced similarity search for this article.