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Journal : ETIKONOMI

The Causality Between Agriculture, Industry, and Economic Growth: Evidence from Indonesia Abdul Bashir; S. Suhel; A. Azwardi; Dirta Pratama Atiyatna; Ichsan Hamidi; Nazeli Adnan
ETIKONOMI Vol 18, No 2 (2019)
Publisher : Faculty of Economic and Business

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (371.682 KB) | DOI: 10.15408/etk.v18i2.9428

Abstract

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
Co-Authors Abdul Bashir ABDUL BASHIR, ABDUL Adawiyah, Robi'Atul Adella Febriana Adnan, Nazeli Ahmad Syathiri Ainul, Putri Siski AK, Syamsurijal Akhmad Afandi Alghifari Mahdi Igamo Andi Nurul Astria Arief Annisa Darmawahyuni Aprianti, Ria Arief, Andi Nurul Astria Bernadette Robiani Darmawahyuni, Annisa Debiyanti, Mega Delovarova, Leila F. Dewi Lusianita Dirta Pratama Atiyatna Djambak, Syaipan Emylia Yuniarti Emylia Yuniarti Febriany, Novita Festriani Christine Fitriyanti, Eka Gustriani Gustriani Gustriani, Gustriani H.T. Dzulkarnain Amin Habibi, Muhammad Ammar Hamira, Hamira Hamira, Hamira Harunurrasyid, Harunurrasyid HASNI YUSRIANTI Hidayat, Ariodillah Ichsan Hamidi Ichsan Hamidi Imam Asngari Imam Asngari Imelda Imelda Ishak, Zulkarnain Isnurhadi Isnurhadi Jatmiko Jatmiko Kodrat Wibowo Kurnia Sari Latif, Abdul Liliana Liliana Linda Linda Luk Luk Fuadah Mardalena Mardalena Marwa, Taufiq Marwa, Taufiq Mega Debiyanti Melliny, Vinny Dwi Muhammad Basir Kimin Muhammad Isnadhi Muhammad Subardin Muhammad Teguh Muhammad Umar Nuh Mukhlis Mukhlis Mukhlis Mukhlis Nazeli Adnan Nazeli Adnan Nida, Rahma Nindi Listika Nuke Dina Apriyanti Pertiwi, Rasyida Putri Devintha S.B. Putri Siski Ainul Ria Aprianti Rina Indiastuti Rizka agi sawitri Saadah Yuliana Shelly Febriana Kartasari Silvia Wati Hidayat Skolastika Ferlicia Sri Andaiyani Subardin, Muhammad Sukanto Sukanto Syamsurijal AK Syathiri, Ahmad Taufiq Taufiq Taufiq Taufiq Vinny Dwi Melliny Welly Nailis Welly Nailis, Welly Yuliana, Saadah Yuniarti, Emylia