This paper provides and discusses empirical application of the GIR10T (Generation of Inter-Regional Input-Output Tables) procedure; a hybrid technique in constructing regional and inter-regional input-output tables designed for island economy. Regional definitions and sectoral classifications are firstly discussed, then followed by description of data and their sources. Phase by phase application of the procedure is then provided and discussed. The validity of the model is examined by inspecting the proportion of regional imports, the pattern of inter-regional trade flows, .the stability of multipliers, as well as by conducting sensitivity analysis. Finally, some notes regarding the problems and the prospects of the procedure are also stressed.

This paper proposes a new hybrid procedure for constructing inter-regional input-output model for an island economy, with special reference to Indonesia. Tlteoretical framework of input-output model concerned with regional dimension is firstly discussed. Hybrid techniques for constructing inter-regional input-output table are then critically reviewed. Four important considerations in which the procedure are based upon are stressed before the proposed procedure is fidly described.

This paper reports a research that aimed to analysis the contribution of technology on Indonesian economy at national, sectoral and spatial perspectives. Growth accounting decomposition technique was employed to calculate the contribution of factors production in the economy. The results showed that, on average, technology contribution to Indonesian economy, in term of TFP growth, was too small (8.79%) if compared to the TFP growth of other countries, especially in the developed countries. Even if compared with the contribution of other factors contribution, such as capital (74.1%) and labor (17.1%). Sectorally, the contribution of technology on Indonesian economy varied among sector. The highest and gave positive contribution were Other Services (72.6%) and Manufacturing (52.6%). The lowest and gave negative contribution were Agriculture (-55.1%) and Financial, Rental and Corporate Services (-38.7%). Spatially, the contribution of technology on Indonesian economy also varied. The highest and gave positive contribution were the Island of Java (47.9%) and Bali-Nusa Tenggara Island (30.4%). The lowest and gave negative contributions were Maluku-Papua Islands (-95.4%) and Kalimantan Island (-24.7%)

This paper analysis direct and indirect impact of economic growth on global competitiveness, with human development as moderator variable. Cross-section data on economic growth, human development and global competitiveness indices were collected from 123 countries and employed in a path analysis model. The results show that economic growth had positive and significant direct impact on global competitiveness. Economic growth had negative and significant direct impact on human development. Meanwhile, human development had positive and significant direct impact on global competitiveness. Indirectly, through moderator variable human development, economic growth had negative and significant impact on global competitiveness. Implications of this finding were that economic growth no longer a single important factor in development indicator for achieving global competitiveness. It is then suggested that human development sustainably be promoted in order to make nations globally competitive.

Employing the concept of black-box system operasionalied by input-output model, this paper analyses linkages and the role of tourism sectors in the economy of Bali. After explaining the method of analysis, an example of black box system consist of input, proses and output of tourism sectors is presented based on the input-output table of Bali. This paper then discusses linkages: direct, open and closed linkages of tourism sectors in the economy of Bali. Disaggregated output, income and import multipliers of these sectors are also provided to indicate which sectors involved. Summary and conclusion are finally provided at the end of the paper.

This paper provides evidences that the Philips curve exists in the world’s economy. The Philips curve depicted a negative correlation between the rate of inflation and unemployment rate. This dilemma has been a big problem faced by any government. Inflation cannot be eliminated without raising unemployment, at least for some time and moderate unemployment cannot be cut sharply without the risk of raising inflation. It was empirically evidence that this curve exist in the short-run. Inflation cannot be reduced without creating a recession. Using cross-section data on inflation rate and rate of unemployment from 182countries all over the world: 49 countries in Asia, 52 countries in Africa, 39 countries in Europe and 29 countries in America, this paper proved that there was a negative correlation between the rate of inflation and unemployment rate. It means that the Philipscurve do exists in economy, but the relationship between them was not statistically significant.

Employing the Indonesian input-output tables both as data sources and as method of analysis, this paper discusses production structure, consumption pattern and the role of maize and soybean in the Indonesian economy. The production structure is discussed by showing the structure of input in producing these commodities; the consumption pattern is indicated by the pattern of output distribution; while the role of these commodities in the national economy is indicated by input-output multipliers. Finally, concluding remarks are provided at the end of the paper.

This paper reports an analysis of technical efficiency and returns to scale in the Indonesia economy during 1983-2013 with special attention to the spatial dimension of the economy. The study focused on seven group of islands: Sumatera (10 Provinces), Java (6 Provinces), Kalimantan (4 Provinces), Sulawesi (6 Provinces), Bali-Nusa Tenggara (3 Provinces), and Maluku (2 Provinces) and Papua (2 Provinces). Cobb Douglass production function was employed to calculate technical efficiency and return to scale using regression analysis. Time series data during 1983-2013 on Gross Regional Domestic Bruto, Capital Stock, and Employment were collected from many sources at the National Statistics Agency. The results show that technical efficiency in production varies among regions. Provinces with coefficients of technical efficiency below that at national level exhibited increasing return to scale. Otherwise, the Provinces with coefficients of technical efficiency above that at national level exhibited decreasing return to scale.

This paper analysis direct and indirect impacts of technological progress on Indonesia’s global competitiveness, with economic growth and human development as moderator variables. Time series data on technological progress, economic growth, human development and global competitiveness of Indonesia were collected many sources and employed in a path analysis model. The results showed that technological progress had a negative and significant direct impact on the global competitiveness. Technological progress had also negative and significant direct impact on human development. Furthermore, technological progress had a positive and significant direct impact on economic growth, and economic growth had positive impact on human development and negative impact on global competitiveness. Indirectly, the impacts of technological progress on global competitiveness varied depend on the path. At P43-P31, indirect impact through human development, the impact was negative and significant. At P43-P32-P21, indirect impact through human development and economic growth, the impact was positive and significant. Finally, at P42-P21, indirect impact through economic growth, the impact was negative and significant. These findings confirm other research by Author using cross-nations data.

The research reported in this paper aimed to analyse the impacts of technological progress on human development, directly and indirectly, using Indonesian data 2004-2013. This period of investigation coincided with the two periods of Yudhoyono adminstration. Technological progress was mesured by Total Factor Productivity growth (%), Economic growth was measured by GDP growth (%), Poverty reduction was measured by percentage of poor people (%), and Human development was measured by human development index. Except data on total factor productivity growth, all data were collected from National Statistic Agency.A path model analysis was empolyed to examine direct and indirect impacts. There were four paths (Path-1 to Path-4) to be analysed. Four hypothesis had been tested.The results showed that the impact of technological progress on human development varied depend on the path. Firstly, on Path-1, technological progress had direct negative impact on human development. This direct impact was statistically significant. Secondly, on Path-2,technological progress indirectly had negative impact on human development, through poverty reduction. This indirect impact was statistically significant. Thirdly, on Path-3,technological progress had positive impact on human development, through poverty reduction and economic growth. This indirect impact was statistically significant. Finally, on Path-4, technological progress indirectly had positive impact on human development, through economic development.