THE CONTRIBUTION OF TECHNOLOGY ON INDONESIAN ECONOMY:
NATIONAL, SECTORAL AND SPATIAL PERSPECTIVES.
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%)