Sectoral growth and income inequality in ASEAN-5 countries: case of low-middle income economies

This paper aims to explore the relationship between growth in economic sectors, especially manufacturing, service, and agriculture, towards income inequality. Furthermore, it utilizes panel data for low-middle income ASEAN countries. The result shows that the share of agricultural sector in GDP has a significant and negative relationship with income inequality. In fact, the effect is robust for the incorporation of control variables. Therefore, it underlines the importance of agricultural sector development for reducing inequality and also for fostering ASEAN economic integration

The Relationship between Oil Palm Expansion and Income Inequality in Indonesia, Malaysia, the Philippines, and Thailand: International Trade Insights

This study aims to explore the relationship between the expansion of oil palm plantations and income inequality in Indonesia, Malaysia, Thailand, and the Philippines. The relationship was investigated using panel data analysis from 2000 to 2019. The results indicate a mixed effect of palm oil expansion on inequality, in which land use for oil palm farming has a significant and negative effect on income inequality as measured by the Gini Index. However, fertilizer consumption and yield in oil palm activities have positive relationships with income inequality. This suggests the importance of supporting equal access to both financing and capacity building. Lastly, this study presents scenarios with and without government intervention. Research paper Keywords: Palm Oil; Expansion; Inequality; International Trade; Data Panel Reference to this paper should be made as follows: Hasudungan. A., & Raeskyesa, D. G. S. (2021). The Relationship between Oil Palm Expansion and Income Inequality in Indonesia, Malaysia, the Philippines, and Thailand: International Trade Insights. Journal of Entrepreneurship, Business and Economics, 9(2), 72–95

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