IDEAS home Printed from https://ideas.repec.org/p/gtr/gatrjs/jber132.html
   My bibliography  Save this paper

The Ability of Export and GDP Value Added in Explaining the Variation of Employment Opportunities in Indonesia

Author

Listed:
  • Dinarjad Achmad

    (Faculty of Economics and Business, Universitas Tanjungpura, Indonesia. Author-2-Name: Umiaty Hamzani)

Abstract

"Objective � This study aims to obtain empirical evidence regarding the ability of exports and gross domestic product (GDP) value-added in explaining the variation of employment opportunities in Indonesia. The method used in this study is explanatory research. Methodology/Technique � This research uses panel data which is a combination of time series data for 8 (eight) years with the cross section of 33 provinces in Indonesia. Data were analyzed using structural equation regression through fixed effect technique and common effect technique. Findings � The results show that using fixed effect technique, the export plays a positive and significant role in creating GDP value added and plays a negative role in creating employment opportunities, whereas the estimated GDP valueadded plays a positive and significant role in shaping the employment opportunities in Indonesia. However, using common effect technique, the export plays a positive and significant role in shaping the GDP value added as well as both export. Novelty � The study suggests that GDP value-added play a positive and significant role in shaping the employment opportunities in Indonesia."

Suggested Citation

  • Dinarjad Achmad, 2017. "The Ability of Export and GDP Value Added in Explaining the Variation of Employment Opportunities in Indonesia," GATR Journals jber132, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber132
    as

    Download full text from publisher

    File URL: http://gatrenterprise.com/GATRJournals/pdf_files/JBER%20Vol%202(2)%20Apr-Jun%202017/3.JBER-Dinarjad-Achmad-CIMSSR-00342.pdf
    Download Restriction: http://gatrenterprise.com/GATRJournals/online_submission.html
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Harris, Richard G. & Schmitt, Nicolas, 2001. "Strategic export policy with foreign direct investment and import substitution," Journal of Development Economics, Elsevier, vol. 64(1), pages 293-312, February.
    2. John C. Anyanwu, 2013. "Characteristics and Macroeconomic Determinants of Youth Employment in Africa," African Development Review, African Development Bank, vol. 25(2), pages 107-129, June.
    3. Brock, Philip L., 1991. "Export instability and the economic performance of developing countries," Journal of Economic Dynamics and Control, Elsevier, vol. 15(1), pages 129-147.
    4. Papanek, Gustav F. & Kyn, Oldrich, 1986. "The effect on income distribution of development, the growth rate and economic strategy," Journal of Development Economics, Elsevier, vol. 23(1), pages 55-65, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.
    2. Zuzana Brixiova & Thierry Kangoye, 2014. "Youth Unemployment in Africa: New Evidence and Policies from Swaziland," AIEL Series in Labour Economics, in: Dario Sciulli & Miguel Ángel Malo (ed.), Disadvantaged Workers, edition 1, chapter 9, pages 181-202, AIEL - Associazione Italiana Economisti del Lavoro.
    3. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
    4. Bourguignon, Francois, 2005. "The Effect of Economic Growth on Social Structures," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 27, pages 1701-1747, Elsevier.
    5. Rémi Bazillier & Nicolas Sirven, 2006. "Les normes fondamentales du travail contribuent-elles à réduire les inégalités ?," Revue Française d'Économie, Programme National Persée, vol. 21(2), pages 111-146.
    6. Takahiro AKITA & Rizal Affandi LUKMAN & Yukino YAMADA, 1999. "Inequality In The Distribution Of Household Expenditures In Indonesia: A Theil Decomposition Analysis," The Developing Economies, Institute of Developing Economies, vol. 37(2), pages 197-221, June.
    7. Elda N. Okolo-Obasi & Joseph I. Uduji & Simplice A. Asongu, 2020. "Strengthening Women’s Participation in the Traditional Enterprises of sub-Saharan Africa: The Role of Corporate Social Responsibility Initiatives in Niger Delta, Nigeria," Working Papers 20/096, European Xtramile Centre of African Studies (EXCAS).
    8. Jalil, Mohammad Muaz, 2009. "Re-examining Kuznets Hypothesis: Does Data Matter?," MPRA Paper 72557, University Library of Munich, Germany.
    9. Marc Audi & Amjad Ali, 2023. "Public Policy and Economic Misery Nexus: A Comparative Analysis of Developed and Developing World," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 56-73, May.
    10. Muhammad Shahbaz & Mohammad Mafizur Rahman, 2012. "Does Nominal Devaluation Improve Income Distribution? Evidence from Bangladesh," South Asian Survey, , vol. 19(1), pages 61-77, March.
    11. Maëlan LE GOFF & Christian EBEKE, 2009. "Why Migrants' Remittances Reduce Income Inequality in some Countries and not in Others?," Working Papers 200919, CERDI.
    12. Bourguignon, Francois & Morrisson, Christian, 1998. "Inequality and development: the role of dualism," Journal of Development Economics, Elsevier, vol. 57(2), pages 233-257.
    13. William Baah-Boateng, 2016. "The youth unemployment challenge in Africa: What are the drivers?," The Economic and Labour Relations Review, , vol. 27(4), pages 413-431, December.
    14. Jaewoo Cho & Jae Hong Kim & Yonsu Kim, 2019. "Metropolitan governance structure and growth–inequality dynamics in the United States," Environment and Planning A, , vol. 51(3), pages 598-616, May.
    15. Mohsen Bahmani-Oskooee & Ruixin Zhang, 2015. "On the impact of financial development on income distribution: time-series evidence," Applied Economics, Taylor & Francis Journals, vol. 47(12), pages 1248-1271, March.
    16. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    17. Abiodun O. Folawewo & Oluwafemi M. Adeboje, 2017. "Macroeconomic Determinants of Unemployment: Empirical Evidence from Economic Community of West African States," African Development Review, African Development Bank, vol. 29(2), pages 197-210, June.
    18. Andrés Rodríguez-Pose & Vassilis Tselios, 2010. "Inequalities in income and education and regional economic growth in western Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 349-375, April.
    19. Mohsen Bahmani‐Oskooee & Mehrnoosh Hasanzade, 2022. "Policy uncertainty and income distribution: Asymmetric evidence from state‐level data in the United States," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 179-220, January.
    20. Sylwester, Kevin, 2002. "Can education expenditures reduce income inequality?," Economics of Education Review, Elsevier, vol. 21(1), pages 43-52, February.

    More about this item

    Keywords

    Common Effect Technique; Employment Opportunity; Export; Fixed Effect Technique; GDP Value Added.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gtr:gatrjs:jber132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Dr. Abd Rahim Mohamad (email available below). General contact details of provider: http://gatrenterprise.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.