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Decomposition Analysis of Changes in the Economic Structure of East Java for the 2010-2015 Period

Decomposition Analysis of Changes in the Economic Structure of East Java for the 2010-2015 Period

Title: Analysis of Decomposition of Changes in the Economic Structure of East Java for the 2010-2015 Period

Author: Ali Akbar Hakim

Student ID: 041914453003

Study Program: Master of Economics

Year of Publication: 2021

Abstract:

This study aims to determine how technological change and the structure of final demand influence changes in the labor force and output structure in East Java during the 2010-2015 period. The analytical method used is structural decomposition analysis of changes in the number of workers and changes in the amount of output. The results show that technology plays a negative role in labor absorption in almost all sectors, while changes in the structure of final demand have a positive impact on labor absorption. However, technology adoption is also known to increase labor absorption through the effect of changes in the structure of intermediate inputs. In general, technological change has had a positive impact on output performance in East Java, particularly in the manufacturing and primary sectors. However, in the service sector group, technological change is known to not contribute significantly to output growth.

Keywords: input-output, structural decomposition analysis, East Java, labor force

Read more: https://repository.unair.ac.id/109725/2/2.%20ABSTRAK.pdf