Structural Model Of Economic Growth On The Island Of Java
Keywords:
Structural transformation; Economic growth; Input–output analysis; Leading sectors
Abstract
Structural transformation is an important topic in the literature on economic growth. Recent research identifies various paths of structural transformation in developing countries, emphasising that the key to growth is the shift of labour from agriculture to manufacturing and services. Input-output analysis of 17 sectors can identify sectors with important roles on the island of Java. The type and design of this research use a descriptive quantitative approach. The results of this study show that the key sectors are played by three sectors, namely sector 4 (electricity, gas and ice production), sector 8 (transportation and warehousing), and sector 13 (business services), because these sectors have strong backward and forward linkages. Therefore, it is important to support these key sectors as well as other economic sectors for the sustainability of Java's economic transformation, particularly in increasing the output multiplier, income multiplier, and employment opportunity multiplier, through support such as investment, both domestic investment (PMDN) and foreign investment (PMA). Furthermore, to sustain economic growth on the island of Java, support is also needed for international trade, with a focus on labour productivity and technology
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Yogyakarta, B. DI. (2025). ICT Development Index and ICT Expertise Sub-index Values by Province. Central Statistics Agency.
BPS Banten. (2021). Banten Province Input-Output Table of Domestic Transactions Based on Producer Prices (17 Business Fields). Central Statistics Agency.
BPS DI Yogyakarta. (2021). Input-Output Table for DI Yogyakarta Province Domestic Transactions Based on Producer Prices (17 Business Fields). Central Statistics Agency.
BPS DI Yogyakarta. (2025). Realisation of Domestic and Foreign Investment by Location. Central Statistics Agency.
BPS DKI Jakarta. (n.d.). Realisation of Domestic and Foreign Investment by Location. 2025.
BPS DKI Jakarta. (2025). ICT Development Index and ICT Expertise Sub-index Values by Province. Central Statistics Agency.
BPS Indonesia. (2025). Labour Productivity by Province. Central Statistics Agency.
Buasan, P., Sajjakulnukit, B., & Bowonthumrongchai, T. (2025). Integrated Open Leontief Model for Analysis of Biomass Pellet Demand in Thailand. International Journal of Renewable Energy Development, 14(1), 104–123. https://doi.org/https://doi.org/10.61435/ijred.2025.60691
Central, B. J. (2021). Central Java Province Input-Output Table of Domestic Transactions Based on Producer Prices (17 Business Fields). Central Statistics Agency.
Dagys, K., Heijman, W., Dries, L., Luvsandorj, N., Agipar, B., & Ayush, D. (2025). Enhancing Economic Diversification in Mongolia: an Input–Output Analysis. Journal of the Asia Pacific Economy, 1–26. https://doi.org/10.1080/13547860.2024.2447150
East, B. J. (2025). ICT Development Index and ICT Expertise Sub-index Values by Province. Central Statistics Agency.
East Java, B. J. (2021). Input-Output Table for East Java Province Domestic Transactions Based on Producer Prices (17 Business Fields). Central Statistics Agency.
East Java BPS. (2025). Realisation of Domestic and Foreign Investment by Location. Central Statistics Agency.
EraTani. (2024). 5 Advanced Agricultural Technologies to Assist Farmers in Cultivation. EraTani.
Florido, A. R., & Mair, S. (2025). Tensions Between Carbon Emissions, Employment, and Value Added Generated by Marine Sectors: A Triple Bottom Line Analysis Using a Novel Input–Output Table for the UK. WILEY Sustainable Development, 33(June), 1366–1380. https://doi.org/10.1002/sd.3188
Gacek, K. (2025). Sectoral Interdependencies and Waste Generation in Poland (2010–2018): Insights from Input-Output Analysis. Economics And Environment, 1(92), 1–14. https://doi.org/10.34659/eis.2025.92.1.798
Giannakis, E., Tsiotas, D., & Papadas, C. T. (2024). Unveiling the Relationship Between Regional Economic Resilience and Input-Output Network Topology: Evidence From the European Union. Regional Science Policy & Practice, 16(5), 1–15. https://doi.org/10.1016/j.rspp.2024.100018
Guler, I. I. (2025). The Transition of CO 2 Emission and Employment Multipliers from Brown to Green Under a Renewable Energy-Based Economic Growth Scenario in Turkiye: 2053 Vision. International Journal of Smart Grid, 9(2), 43–58.
Indonesia, B. (2025). Indonesia's Exports and Imports by Province and Port of Loading. Central Statistics Agency.
Jakarta, B. D. (2021). DKI Jakarta Province Input-Output Table of Domestic Transactions Based on Producer Prices (17 Business Fields). Central Statistics Agency.
Leontief, W. (1986). Input-Output Economics (Second Edition). Oxford University Press, Inc.
Liang, Q., Hu, Y., Zhang, W., Yang, Y., & Xu, M. (2025). Input-Output Analysis of Economic Linkages Between China and Arctic Countries. Research in Cold and Arid Regions, January, 1–13. https://doi.org/10.1016/j.rcar.2025.06.004
Marinos, T., Markaki, M., Sarafidis, Y., Georgopoulou, E., & Mirasgedis, S. (2025). The Economic Effects of the Green Transition of the Greek Economy: An Input – Output Analysis. Energies MDPI, 18, 1–45. https://doi.org/https://doi.org/10.3390/en18154177
Mueller, T., Winter, E., & Grote, U. (2025). Decarbonising the Aviation Sector: Multiplier Effects of Power-to-Liquid Fuel Production on the German Economy. Sustainable Energy Technologies and Assessments, 82(August), 1–13. https://doi.org/10.1016/j.seta.2025.104478
Omar, M. M., Mohamed, A. A., Abdulle, A. Y., & Alasow, A. A. (2025). Weathering the Storm: The Role of Climate Variability and Production Inputs in Shaping Somalia’s Agricultural Output. International Journal of Sustainable Development and Planning, 20(2), 709–719. https://doi.org/https://doi.org/10.18280/ijsdp.200220
Sevda, H. (2025). Problems of Development of Small and Medium-Sized Enterprises in the Agribusiness Sector in Azerbaijan. International Journal of Environmental Sciences, 11(3), 99–113. https://www.theaspd.com/ijes.php
West, B. J. (2025). ICT Development Index and ICT Expertise Sub-index Values by Province. Central Statistics Agency.
West Java BPS. (2021). East Java Province Input-Output Table of Domestic Transactions Based on Producer Prices (17 Business Fields). Central Statistics Agency.
West Java BPS. (2025). Realisation of Domestic and Foreign Investment by Location. Central Statistics Agency.
Yogyakarta, B. DI. (2025). ICT Development Index and ICT Expertise Sub-index Values by Province. Central Statistics Agency.
Published
2025-12-19
How to Cite
M. Aliyuddin, Etty Soesilowati, & Tri Wahyu Hardaningrum. (2025). Structural Model Of Economic Growth On The Island Of Java. International Journal of Business and Quality Research, 3(04), 374-389. https://doi.org/10.63922/ijbqr.v3i04.2705
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