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The Ability of Export and GDP Value Added in Explaining the Variation of Employment Opportunities in Indonesia

Author

Listed:
  • Dinarjad Achmad

    (Faculty of Economics and Business, Universitas Tanjungpura, Indonesia. Author-2-Name: Umiaty Hamzani)

Abstract

"Objective � This study aims to obtain empirical evidence regarding the ability of exports and gross domestic product (GDP) value-added in explaining the variation of employment opportunities in Indonesia. The method used in this study is explanatory research. Methodology/Technique � This research uses panel data which is a combination of time series data for 8 (eight) years with the cross section of 33 provinces in Indonesia. Data were analyzed using structural equation regression through fixed effect technique and common effect technique. Findings � The results show that using fixed effect technique, the export plays a positive and significant role in creating GDP value added and plays a negative role in creating employment opportunities, whereas the estimated GDP valueadded plays a positive and significant role in shaping the employment opportunities in Indonesia. However, using common effect technique, the export plays a positive and significant role in shaping the GDP value added as well as both export. Novelty � The study suggests that GDP value-added play a positive and significant role in shaping the employment opportunities in Indonesia."

Suggested Citation

  • Dinarjad Achmad, 2017. "The Ability of Export and GDP Value Added in Explaining the Variation of Employment Opportunities in Indonesia," GATR Journals jber132, Global Academy of Training and Research (GATR) Enterprise.
  • Handle: RePEc:gtr:gatrjs:jber132
    as

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    References listed on IDEAS

    as
    1. Harris, Richard G. & Schmitt, Nicolas, 2001. "Strategic export policy with foreign direct investment and import substitution," Journal of Development Economics, Elsevier, vol. 64(1), pages 293-312, February.
    2. John C. Anyanwu, 2013. "Characteristics and Macroeconomic Determinants of Youth Employment in Africa," African Development Review, African Development Bank, vol. 25(2), pages 107-129, June.
    3. Brock, Philip L., 1991. "Export instability and the economic performance of developing countries," Journal of Economic Dynamics and Control, Elsevier, vol. 15(1), pages 129-147.
    4. Papanek, Gustav F. & Kyn, Oldrich, 1986. "The effect on income distribution of development, the growth rate and economic strategy," Journal of Development Economics, Elsevier, vol. 23(1), pages 55-65, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Common Effect Technique; Employment Opportunity; Export; Fixed Effect Technique; GDP Value Added.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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