The industry is the current engine of the Indonesian economy over the past three decades; the economic structure in Indonesia has the transformation from the agriculture sector to the industry sector. The objective of this study is to examine the causality between agricultural, industry, and economic growth in Indonesia. By using the vector error correction model (VECM), this research finds that in the long-term, there is directional causality from the industry added value, economic growth on the agricultural added value. Meanwhile, in the short-term, the variable of industry added value and economic growth has the two-way causality. Besides, the agricultural added value can only affect the industrial added value and economic growth in the short-term. These findings support the idea that the agricultural sector plays a vital role in the economy, such as increasing economic growth and growth in other sectors, especially the industrial sector in this case.JEL Classification: F40, L60, O13, O47
Purpose: this study measures gender segregation by occupations and wage inequality based on overall segregation, vertical segregation, and horizontal segregation in terms of labour supply, namely differences in wages, hours of work, age, level of education, and mobility (rural and urban) in South Sumatra Province in 2019.Methods: the data used in this study are secondary data sourced from the 2019 South Sumatra Province Labour Force Survey (SAK19.AK) which is limited to individuals aged 15 to 64 who are currently working, namely as many as 10,429 individuals, of whom 6,873 men and 3,556 women. Classification of the main occupations using quantitative analysis techniques, namely measuring segregation is based on the overall, vertical and horizontal dimensions based on the Gini coefficient, Somer D Statistic, and Pythagorean Theorem.Results: (1) Women are more segregated based on the main occupations, especially jobs with high social stratification and wage groups. (2) Women have more advantages in workplaces with low social stratification and higher education categories. (3) There is no wage inequality based on the main occupations, education, age, and mobility.Conclusions and Relevance: the results of the study prove that there is high segregation based on wage groups and educational composition. Women emphasize increasing education because based on vertical segregation, women with higher education level advantage more and they occupy jobs that are equal to men based on wage stratification.
The economic growth is necessary to increase prosperity and regional economic performance. For major component of economic growth on the demand side is the value of investment and government expenditure. Therefore, investment and government expenditure has a strategic role in improving the performance of regional economy. In line with that matter, this study was aimed to determine the relationship of government expenditure simultaneously with the economic performance of the regencies/cities in South Sumatra province. The data used is secondary data obtained from the Central Statistics Agency (BPS) of regencies/cities in the province of South Sumatra, Bank Indonesia, and the General Director of Fiscal Balance (DJPK) of Indonesia Republic. The analytical method used was multiple regression panel data using simultaneous equations. The results showed: government expenditure, investment and labor altogether significantly affects economic growth; the variables of economic growth, fiscal capacity, general allocation funds and the number of labor altogether affect government expenditure; and the variables of economic growth, government expenditure, wages and the number of investment altogether affect employment. This study has a limitation in a variety of variables that affect government expenditure, because it is for more research needs to re-inventory the variables that affect government expenditure, including variable Special Allocation Fund (DAK).
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