Investment Improvement of Agricultural Sector in East Java
Muryani Muryani
International Journal of Research in Business and Social Science · 2019 · Vol. 8 / Issue 4 · 215-223
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Abstract
The Agricultural Demand Led Industrialization (ADLI) strategy can be considered effective because of the dominant amount of East Java land (74.11%) cultivated for the agricultural sector. This study aims to determine the relationship between the agricultural and manufacturing industry sectors; knowing the impact of the “Agricultural Demand Led Industrialization” (ADLI) strategy in the East Java economy; and knowing the elasticity of agricultural investment on output creation, gross value added, and income in East Java. This research uses the Input-Output (IO) analysis technique for all economic sectors in East Java, with an emphasis on the agricultural sector and processing industry in 1995-2010. The empirical results state that the ADLI Strategy has a positive impact on output creation and income in the East Java economy. The level of sensitivity /response from the output, gross value added, and income due to changes in investment value in the agricultural sector is relatively not much different.
Keywords: {'name': 'ADLI'}, {'name': 'Agriculture'}, {'name': 'Industry'}, {'name': 'Input-Output'}
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Muryani Muryani
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