The Role of Agriculture Sector in the Economy of Bogor District: Input-Output Analysis

Abstract

A lackluster performance has been shown by agriculture sector in Bogor District from 2008 to 2012. In fact, agriculture sector in Bogor District need to be highly supported due to the roles that it possibly gives for development, the challanges that it face, and the avalibility of rooms to improve. This study aims toanalyze the role of agriculture sector in the economy of Bogor District by using Input-Output (I-O) analysis which covers linkages analysis, dispersion effect analysis, multiplier effect analysis, and key sectors identification. Secondary data namely I-O Table of Bogor District 2011 is used in this study. The results of this study show that agriculture sector delivers considerable contributions to the structure of economy of Bogor District, especially in terms of employment. Agriculture sector has relatively low forward and backward linkage but it has the capability in boosting the growth of its upstream and downstream sectors. Its total output multiplier, total income multiplier, and total employment multiplier are 2.6262, 0.3738, and 0,0555 respectively.Based on the rank, agriculture sector in Bogor District has a realtively high total employment multiplier becase it owns the third rank in employment multiplier. Based on the total rank of total multiplier effect and the dispersion effect analysis, agriculture sector is categorized as one of the key sectors of Bogor District and it uncommonly has a better total multiplier effect compared to manufacturing sector and trade sector.