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Growth of oil/gas sectors and non oil/gas trade: The impact on labor-force participation rates in Indonesia

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  • Sessu, Andi
  • Jamali, Hisnol

Abstract

Export trade balance, oil and non-oil imports, Indonesia is in an active state or economy to prosper, while the results of multiple regression analysis showed that the export of non oil/gas, non oil/gas import, oil and gas imports and economic growth positive effect on the labor force participation rate, which means every increased four variables also increased labor force participation rate, while oil and gas exports have negative effect means that any increased export of oil and gas resulting in a decline in labor force participation rates and significant effect of all the variables of the labor force participation rate in Indonesia. Multiple correlation coefficients obtained r = 0.998 shows the effect of variable export of non oil/gas, non oil/gas import, export of oil and gas, oil and gas imports, economic growth together very strong and the coefficient of determination together the five variables can be R = 0.996 shows the percentage contribution of influence together of 99% means that only 0.01% contribution of other variables influence the level of labor force participation in Indonesia. It can be concluded that the development of oil and gas trade and non-oil and gas in Indonesia still need cooperation between individual communities, private sector, civil society and government in an effort to increase trade in Indonesia, because it is very big influence on the labor force participation rate that could lower the unemployment rate and can automatically reducing poverty, because unemployment and poverty in Indonesia is still high when compared with some other countries in the world

Suggested Citation

  • Sessu, Andi & Jamali, Hisnol, 2018. "Growth of oil/gas sectors and non oil/gas trade: The impact on labor-force participation rates in Indonesia," INA-Rxiv p9z4k, Center for Open Science.
    • Handle: RePEc:osf:inarxi:p9z4k
    DOI: 10.31219/osf.io/p9z4k
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    References listed on IDEAS

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    1. Armida S. Alisjahbana & Jonah M. Busch, 2017. "Forestry, Forest Fires, and Climate Change in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(2), pages 111-136, May.
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