IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v27y2018i5p521-540.html
   My bibliography  Save this article

Validity of unbalanced growth theory and sectoral investment priorities in Indonesia: Application of feature ranking methods

Author

Listed:
  • Andisheh Saliminezhad
  • Fatma G. Lisaniler

Abstract

This study develops a new approach for testing the validity of unbalanced growth theory as well as determining the sectoral priorities for investment in Indonesia over the period 1995–2015. To this end, the high linkage sector(s) is identified through the input–output framework. Afterward, two different approaches, multiple linear regression and multi-layered perceptron (MLP) artificial neural network, are applied to capture the linear and nonlinear relationships between the extracted engine sectors and gross domestic product growth. Given that the detection of sector ranking is crucial for preparing a proper development plan, in the same vein we apply two types of feature-ranking methods (namely, stepwise regression and ant colony optimization (ACO-MLP based). The findings suggest a consistent relationship between the theory and economic growth in both linear and nonlinear models. However, the nonlinear model outperforms its competitor. In general, we find that the manufacturing sector is the most strategic sector in Indonesia, as it has been ranked first in both linear and nonlinear forms. Hence, its development path could be reinforced by more investment in this leading sector and then followed by investment in construction, hotels and restaurants, and agriculture.

Suggested Citation

  • Andisheh Saliminezhad & Fatma G. Lisaniler, 2018. "Validity of unbalanced growth theory and sectoral investment priorities in Indonesia: Application of feature ranking methods," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(5), pages 521-540, July.
    • Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:521-540
    DOI: 10.1080/09638199.2017.1398270
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2017.1398270
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638199.2017.1398270?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andisheh Saliminezhad & Huseyin Ozdeser & Dahiru Alhaji Bala Birnintsaba, 2022. "Environmental degradation and economic growth: time-varying and nonlinear evidence from Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6288-6301, May.
    2. Kebede, Selamawit G. & Heshmati, Almas, 2023. "Sectoral Linkage in the Ethiopian Economy: A Social Accounting Matrix Multiplier Analysis," IZA Discussion Papers 15845, Institute of Labor Economics (IZA).
    3. Mehdi Seraj & Pejman Bahramian & Abdulkareem Alhassan & Rasool Dehghanzadeh Shahabad, 2020. "The validity of Rodrik’s conclusion on real exchange rate and economic growth: factor priority evidence from feature selection approach," Palgrave Communications, Palgrave Macmillan, vol. 6(1), pages 1-6, December.

    More about this item

    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:taf:jitecd:v:27:y:2018:i:5:p:521-540. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    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.