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

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

GATR Journals from Global Academy of Training and Research (GATR) Enterprise

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."

Keywords: Common Effect Technique; Employment Opportunity; Export; Fixed Effect Technique; GDP Value Added. (search for similar items in EconPapers)
JEL-codes: E24 F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-sea
Date: 2017-04-23
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Published in Journal of Business and Economics Review, Volume 2, Issue 2

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