ANALYSIS OF THE TOURISM SECTOR IN INDONESIA USING THE INPUT-OUTPUT AND ERROR-CORRECTION MODEL APPROACH

ABSTRACTThis research explores the role of the tourism sector in Indonesia, including its backward and forward linkages with other economic sectors. The tourism sector is represented by the hotel and restaurant (hospitality) industry. The study uses the input-output method and traces the econometric backward and forward shocks of the tourism sector with the Error Correction Model (ECM), using database from Statistics Indonesia from 2010 to 2019. The paper contributes to the existing literature by using multi-stage quantitative processes to observe backward and forward economic linkages. The result shows that manufacturing output contributes a significant and positive effect to the hotel and restaurant industry. At the same time, the tourism sector provides a significant and positive contribution to government retribution. Nonetheless, there is a negative relationship between the growth of the agriculture and tourism sector, which is assumed due to the tradeoff in the factor of production between the agricultural and tourism sector development. Consequently, backward and forward relationships suggest more holistic and prudent economic policies for observing interdependent tourism development in Indonesia's other economic sectors. ABSTRAKTujuan penelitian ini adalah menginvestigasi keterkaitan ke belakang dan ke depan antara sektor pariwisata dan sektor ekonomi lain di Indonesia. Pariwisata di sini di wakili sektor perhotelan dan restoran. Studi ini menggunakan metode input-output dengan data berasal dari database input output Bank Pembangunan Asia (ADB). Kedua, studi menelusuri  keterkaitan ekonometrik ke depan dan ke belakang pariwisata dengan model koreksi kesalahan (ECM), menggunakan data triwulan dari PDB riil di database BPS dari tahun 2010 hingga 2019. Kontribusi makalah ini adalah proses multi-asesment untuk mengamati keterkaitan ekonomi ke belakang dan ke depan antara pariwisata dengan sektor ekonomi lainnya. Dari ekonometri tersebut, diketahui bahwa kontribusi output industry manufaktur berpengaruh signifikan dan positif terhadap industri hotel dan restoran. Selain itu, pariwisata memberikan kontribusi yang signifikan dan positif untuk retribusi pemerintah. Meskipun demikian, peningkatan output pariwisata datang dengan pengorbanan pengurangan output sektor pertanian. Hal ini dipengaruhi oleh kompetisi akses faktor produksi di antara kedua sektor tersebut. Hasil ini  menekankan perlunya kebijakan ekonomi yang lebih holistik dan hati-hati terhadap saling ketergantungan antara pembangunan pariwisata dengan sektor ekonomi lain di Indonesia

The Structural and Macroeconomic Determinants of Manufacturing Export-Value Performance in ASEAN Countries

This study aims to scrutinize the determinants of manufacturing exports in several ASEAN countries, specifically: Indonesia, Malaysia, Thailand, Philippines, and Vietnam. It adopts a panel data regression using the random effects model to predict manufacturing export value using structural (economic complexity and human capital) and macroeconomic (real effective exchange rate, foreign direct investment, and inflation) variables. The research finds that foreign direct investment, human capital, real effective exchange rate, and inflation are positive and statistically significant predictors of manufacturing exports in these ASEAN countries. However, the positive correlation between the real effective exchange rate and manufacturing exports is against previous literature arguing that a currency’s depreciation drives export competitiveness. The findings suggest that currency appreciation can enhance a country’s export performance as exports’ input products are cheaper than before. Additionally, the positive influence of inflation on exports can be explained by the subsequent increase in consumption from foreign countries. Therefore, in addition to managing their exchange rates, countries must develop their human capital and attract more foreign investments to enhance their export performance

The Impact of E-Commerce Adoption Factors on the Growth of MSMEs E-Commerce Sales in Jabodetabek Area, Indonesia

The world is shifting digitally and just like humans, businesses need to adapt as well in order to keep up in this digital business era. In order to survive the current era, especially with the ongoing global pandemic, many micro, small, and medium enterprises (MSMEs) adopt e-commerce technologies to assist in their business growth. Several theories of e-commerce adoption have been proposed; the Technological Organizational and Environmental (TOE) Framework presents the impact of theoretical aspects in technology adoption. Therefore, this study aims to examine and identify how the TOE framework of e-commerce adoption contributes to improving the growth sales of MSMEs in the digital business era. The study utilizes cross-sectional data targeting 150 MSME owners and managers in Java’s Big City Clusters of Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi). The analysis was divided into three stages of analysis: the multi-stage regression analysis, the confirmatory factor analysis, and the regression analysis. The final result shows that technological and organizational factors have a significant and positive relationship with the growth of MSME e-commerce sales. Meanwhile, the environmental factor shows otherwise due to external parties giving uncertainty to the growth of the business by adopting the technology. The negative result is affected by several factors, one of which is the use of latent variables, making it uncertain to sum any conclusion. Hence, it is implied that MSMEs need to continue or even improve business performance by being compatible with its infrastructure, and must be able to leverage the relative advantages of using the electronic commerce platforms as a tool. Moreover, MSMEs are expected to be ready to develop their business internally while remaining vigilant and prepared for future situations that may arise. Furthermore, policymakers should implement policies to support MSMEs in becoming multichannel sellers. Research paper Keywords: MSMEs; E-commerce; E-commerce Adoption Factors; TOE Framework; Jabodetabek Reference to this paper should be made as follows: Tirtana, M. Q., Hasudungan, A., Tjong, V. C., & Lukas, E. N. (2022). The Impact of E-Commerce Adoption Factors on the Growth of MSMEs E-Commerce Sales in Jabodetabek Area, Indonesia. Journal of Entrepreneurship, Business and Economics, 10(2), 172–191

The Impact of E-Commerce Adoption Factors on the Growth of MSMEs E-Commerce Sales in Jabodetabek Area, Indonesia

The world is shifting digitally and just like humans, businesses need to adapt as well in order to keep up in this digital business era. In order to survive the current era, especially with the ongoing global pandemic, many micro, small, and medium enterprises (MSMEs) adopt e-commerce technologies to assist in their business growth. Several theories of e-commerce adoption have been proposed; the Technological Organizational and Environmental (TOE) Framework presents the impact of theoretical aspects in technology adoption. Therefore, this study aims to examine and identify how the TOE framework of e-commerce adoption contributes to improving the growth sales of MSMEs in the digital business era. The study utilizes cross-sectional data targeting 150 MSME owners and managers in Java’s Big City Clusters of Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi). The analysis was divided into three stages of analysis: the multi-stage regression analysis, the confirmatory factor analysis, and the regression analysis. The final result shows that technological and organizational factors have a significant and positive relationship with the growth of MSME e-commerce sales. Meanwhile, the environmental factor shows otherwise due to external parties giving uncertainty to the growth of the business by adopting the technology. The negative result is affected by several factors, one of which is the use of latent variables, making it uncertain to sum any conclusion. Hence, it is implied that MSMEs need to continue or even improve business performance by being compatible with its infrastructure, and must be able to leverage the relative advantages of using the electronic commerce platforms as a tool. Moreover, MSMEs are expected to be ready to develop their business internally while remaining vigilant and prepared for future situations that may arise. Furthermore, policymakers should implement policies to support MSMEs in becoming multichannel sellers. Research paper Keywords: MSMEs; E-commerce; E-commerce Adoption Factors; TOE Framework; Jabodetabek Reference to this paper should be made as follows: Tirtana, M. Q., Hasudungan, A., Tjong, V. C., & Lukas, E. N. (2022). The Impact of E-Commerce Adoption Factors on the Growth of MSMEs E-Commerce Sales in Jabodetabek Area, Indonesia. Journal of Entrepreneurship, Business and Economics, 10(2), 172–191