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Association between Investment, Production, Export and Import: The Impact of Labor Force Absorption in Indonesia

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  • Sessu, Andi
  • Jamali, Hisnol

Abstract

This study produced several important findings, namely: (a) trade, especially foreign trade (exports and imports) and domestic production which increases the expansion of employment opportunities; (b) economic growth as measured by the growth of production and growth in investment showed an influence on the improvement of employment opportunities; and (c) Simultaneously, export, import, production and investment have a significant effect on employment. In connection with this, the Central Government of the Republic of Indonesia must continue to promote investment, especially sector Agroindustry and other agriculture-based industries, including fertilizer and pesticide industries. Imports of used clothing and used tires must be stopped to allow the national industry sector to recover profitable economic capacity. The agricultural sector must still get attention, especially food crops such as soybean, corn and rice and fruit to strengthen national food agriculture and agriculture-based industries as well as save on foreign exchange

Suggested Citation

  • Sessu, Andi & Jamali, Hisnol, 2015. "Association between Investment, Production, Export and Import: The Impact of Labor Force Absorption in Indonesia," OSF Preprints w8a79, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:w8a79
    DOI: 10.31219/osf.io/w8a79
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    References listed on IDEAS

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    3. Yati Kurniati & Yanfitri, 2010. "Dinamika Industri Manufaktur dan Respon Terhadap Siklus Bisnis," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 13(2), pages 1-34, October.
    4. Azizur Rahman Khan, 2007. "Growth, employment and poverty: An analysis of the vital nexus based on some recent UNDP and ILO/SIDA studies," Working Papers 49, United Nations, Department of Economics and Social Affairs.
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