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An Analysis of Employment and Growth in Java after the Economic Crisis 1997/1998: Examining the Role of Farm Activities in West Java

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  • Hirawan, Fajar Bambang

Abstract

In this paper, we examine the relationship between employment and economic growth in the most populated island in Indonesia, Java, specifically in West Java. When Indonesia suffered a dreadful economic crisis during 1997/1998, none of the regions or sectors survived its impact, especially farm and non-farm activities. The economy started to improve in the year 2000, but non-economic fundamental factors significantly impacted the economy at that time. The results of this paper indicate that employment has a relationship to economic growth. In West Java farm activities, which are agriculture, livestock, forestry, and fisheries (ALFF), have a negative correlation with economic growth. On the other hand, non-farm activities have a positive correlation with economic growth. The value of the coefficient of variation (CV) surprisingly signifies that employment and GDP relating to farm activities in West Java are more stable than non-farm activities after the economic crisis of 1997/1998.

Suggested Citation

  • Hirawan, Fajar Bambang, 2008. "An Analysis of Employment and Growth in Java after the Economic Crisis 1997/1998: Examining the Role of Farm Activities in West Java," MPRA Paper 10441, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10441
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    More about this item

    Keywords

    Employment; Economic Growth; West Java; Farm Activities; Non-Farm Activities;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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