Analysis of 17 Sectors of East Java Province on the Java-Bali Economy in 2021: Input-Output Approach

Abstrak

This study analyzes 17 economic sectors in East Java Province within the context of Java-Bali in 2021 using the input-output approach. The objective is to identify key sectors with significant potential to drive regional economic growth. The analysis uses input-output tables to evaluate inter-sectoral relationships through backward and forward linkages. The results show that the manufacturing industry, transportation and warehousing, electricity and gas supply, information and communication, and business services sectors are strategic sectors with dispersion power index and sensitivity degree index values greater than one. These sectors exhibit high backward and forward linkages, indicating substantial potential to influence economic growth. Additionally, the economic multiplier analysis reveals that these leading sectors have higher output multipliers, household income, and employment compared to non-leading sectors. This suggests that these sectors are more effective in driving economic development and improving community welfare. Therefore, prioritizing these leading sectors can have a more significant economic impact on regional growth and community well-being. This study recommends that regional economic development policies should focus on these strategic sectors to achieve more inclusive and sustainable growth. The findings underline the importance of targeted policy measures to harness the potential of key sectors for maximizing regional economic benefits.