An Analysis of the Economic Sectors Linkages in the Province of Aceh : Input-Output Approach

Abstract

The economic sectors have a crucial role in the development of both national and regional economy. A comprehensive and sustainable economic integration among all production sectors is the key to a successful economic development. In a market economy, an integrated economy can be seen when interaction occur among the economic players-buying and selling the input and output of production. The objectives of this research were to (1) analyze the contribution of economic sectors in the development of Aceh province, (2) analyze the linkage among the economic sectors in the development of Aceh province, (3) analyze the impact (multiplier) of changes in the final demand on output, income and labor in the economic sectors, and (4) analyze the impact of changes in the consumption expenditure of the household, government, and export on output, income and labor economic sectors. Input-output tables were used to analyze the magnitude of linkages among the sectors in the economic development of a region. The results showed that the gas mining sector in the economic sector with a relatively large role in the creation of output and added values in the economic development of Aceh province. In terms of the linkage level, the sector with the greatest value of direct backward linkage is the electricity sector, while the sector with the largest value of direct and indirect backward linkages are the industrial sectors of food, beverages and tobacco. Meanwhile, the sector with the biggest value of forward linkage is the trade sector, whereas the gas mining sector has the biggest value of direct and indirect forward linkage. Based on the output multiplier value, the output of food, beverages and tobacco industrial sectors have a relativey large value compared with the other economic sectors. As for the value of income multiplier, electricity sectors as well as industrial sectors of food, beverages and tobacco have relatively high multiplier values. In terms of the labor multiplier, the sector with a relatively high multiplier value is the milling industry of rice, grain and flour. Meanwhile, result simulation the scenario of first showed that increasing the number of output whole the economic sector has a relatively large compared with increase of income and labor. The result simulation the scenario of second showed that decrease consumption of the household and government there caused to decrease the number of output and labor in whole economic sector. While result simulation the scenario of third showed that if the export was raised, increasing the number of output is relatively larger than increase of income and labor. Of the three of simulations to increase the number of output be the third scenario is capable to producing the greatest number of output in whole economic sector.