Linkages, Multiplier Effects of Textile and Clothing Industry in Java from Global Trade Perspective: Inter-Regional Input-Output Analysis

Iklimah Nur Rachmah (), Eka Puspitawati (), Andika Pambudi () and Yuri Mansury ()
Additional contact information
Iklimah Nur Rachmah: Universitas Pertamina, Faculty of Economics and Business
Eka Puspitawati: Universitas Pertamina, Faculty of Economics and Business
Andika Pambudi: Universitas Pertamina, Faculty of Economics and Business
Yuri Mansury: Illinois Institute of Technology

A chapter in Proceedings of the International Conference on Contemporary Risk Studies (ICONIC-RS 2025), 2026, pp 69-85 from Springer

Abstract: Abstract This study analyzes the strategic role of the textile and clothing industry in Java through sectoral linkages and multiplier effects analysis, considering strategic risks within the context of global trade. This study uses Indonesia’s Inter-Regional Input-Output (IRIO) table data according to 6 islands and 52 industries in 2016, sourced from Statistic Indonesia. The results indicate that the textile and clothing industry in Java has a backward linkage of 0.51. The multiplier output value of 1.92 indicates that every 1 million rupiah increase in final demand for this industry will drive the growth of output across all sectors by 1.92 million rupiah. Meanwhile, the labor multiplier value of 0.070 reflects the labor-intensive role of this sector and its significant potential in job creation. This condition is particularly vulnerable to changes in global trade policy, fluctuations in the price of imported raw materials, and protectionist policies in major export destination countries. For this reason, mitigation strategies are needed to maintain the sectors’ stability in the face of uncertain global dynamics.

Keywords: Global Trade; Inter Regional Input-Output; Multiplier Effect; Sectoral Linkages; Textile and Clothing Industry (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-2-38476-595-9_6

Ordering information: This item can be ordered from
http://www.springer.com/9782384765959

DOI: 10.2991/978-2-38476-595-9_6

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().