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Employment effect of Indonesia’s non-oil export

Author

Listed:
  • Nur Feriyanto

    (Faculty of Economics, Universitas Islam Indonesia)

Abstract

Indonesian government needs both domestic and foreign investments to accelerate its economic development. The investments enable promoting export and creating higher employment level. This research uses a path analysis method to analyze time series data of the period 1990 to 2009. It finds that both domestic and foreign direct investments significantly and positively influence Indonesia?s non-oil exports. In addition, it suggests that non-oil export performance can eventually lead to an increase in employment level in Indonesia. The policy implication of these results is that Indonesian government should encourage investment to promote export and absorb more labor.

Suggested Citation

  • Nur Feriyanto, 2012. "Employment effect of Indonesia’s non-oil export," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(2), pages 211-221, April.
    • Handle: RePEc:uii:journl:v:2:y:2010:i:2:p:211-221
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    References listed on IDEAS

    as
    1. Kevin H. O'Rourke, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," The Institute for International Integration Studies Discussion Paper Series iiisdp07, IIIS.
    2. C. Peter Timmer, 2004. "The road to pro-poor growth: the Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(2), pages 177-207.
    3. Xiaolan Fu & V.N.Balasubramanyam, 2004. "Exports, FDI, Growth Of Small Rural Enterprises And Employment In China," Working Papers wp286, Centre for Business Research, University of Cambridge.
    4. Goran Vuksic, 2005. "Impact of foreign direct investment on Croatian manufacturing exports," Financial Theory and Practice, Institute of Public Finance, vol. 29(2), pages 131-158.
    5. repec:bla:devpol:v:26:y:2008:i:1:p:79-89 is not listed on IDEAS
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    More about this item

    Keywords

    Foreign direct investment; domestic investment; non-oil export; labor absorption;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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