Spatial Dimension of Multipliers and Flow-on Effects in Java Island Economy: An Inter-Island Input-Output Analysis

Muchdie

Abstract: This paper is aimed to provide the results of analysis on total, sector-specific, and spatial-specific multipliers and flow-on effects in Java Island economy. The model employed was Inter-Island Input-Output Model (IIIOM) developed using new hybrid procedures with special attention on Island economy. Data used for model were updated to Indonesian data for the year of 2015. The results show that firstly, the important sectors of Java Island economy could be based on total multipliers and flow-on effects of output, income and employment. Secondly, important economic sectors could be based on sector-specific multipliers, multipliers that occurred in own sector and other sectors. Thirdly, important economic sectors could be based on spatial-specific multipliers, multipliers that occurred both in own region and other regions. Fourthly, important economic sectors could be based on spatial distribution of flow-on, flow-on effects that occurred in own region as well as in other regions.

Keywords: sectoral-specific multipliers, spatial-specific multipliers, flow-on effects

How to Cite?: Muchdie, "Spatial Dimension of Multipliers and Flow-on Effects in Java Island Economy: An Inter-Island Input-Output Analysis", Volume 6 Issue 6, June 2017, International Journal of Science and Research (IJSR), Pages: 1195-1203, https://www.ijsr.net/getabstract.php?paperid=ART20174473, DOI: https://dx.doi.org/10.21275/ART20174473