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Journal : International Journal of Local Economic Governance

Analysis the Industrial Sector Labor and the Small and Medium Enterprises’ Labor on the Two Sectors Economy in East Java Wijayanti, Febry; Sasongko, Sasongko; Mahardika, Putu
International Journal of Social and Local Economic Governance Vol. 1 No. 2 (2015)
Publisher : Institute of Research and Community Service, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.ijleg.2015.001.02.5

Abstract

Two-sectors model from Lewis Theory describes the movement of labor who move from agricultural sector to the industrial sector with the assumption that they are moving because the pull of wages. The theory does not consider that the wage problem in the industry sector create movement to the informal sector. This research has two purposes, first, to know the implementation of the industrial sector labor with five variables (GDP growth in the agricultural and industrial sectors, the regional minimum wage rates, labor force and total labor agriculture). Second, the implementation of the small and medium enterprises (SME) labor with five variables (GDP growth in the agricultural and industrial sectors, labor force, agriculture sector labor and industrial sector labor). This research is using quantitative methods with panel regression. Results from this study indicate that the transformation of agricultural labor to industries in East Java, especially the links between agricultural growth and wages on employment in the industrial sector has not been proven. The Lewis theoretical proven is the growth of the industrial sector and the number of workers to the industrial sector employment. There is no correlation between the output agricultural sector and industrial sector of the SME sector. SME sector only be a last resort, after all the labors are rejected from the formal sector.Keywords:Lewis Theory, Agriculture Sector, Industry Sector, SME Sector, Labor and Minimum Wage 
Local Economic Development-Based on Farming Manufacture of Coconut Sugar in West Sei Kepayang District Matondang, Khairani Alawiyah; Suman, Agus; Sasongko, Sasongko; A.S., Putu Mahardika
International Journal of Social and Local Economic Governance Vol. 3 No. 1 (2017)
Publisher : Institute of Research and Community Service, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.ijleg.2017.003.01.9

Abstract

The existence of coconut commodity abundance in the district of West Sei Kepayang of Asahan regency of North Sumatra province has not been utilized to the fullest. Though the potential of this commodity can be the basis of local economic development (LED). Of some its derivative products, coconut sugar has the economic potential to improve farmers welfare due to various advantages as well as a good market share prospect.This study aims to analyze the potential for the farm manufacture of coconut sugar to be used as a base of LED in the district of West Sei Kepayang. Data collected by survey method and then analyzed by descriptive quantitative by a financial feasibility analysis those are the Net Present Value (NPV), Net Benefit Cost Ratio (NBCR), Internal Rate of Return (IRR) and Payback of Period (PP) and by descriptive qualitative. The results of a financial feasibility analysis showed that the NPV is positive, NBCR is greater than one, the IRR is greater than the actual interest rate and PP can be restored in a relatively short time.Keywords: Local Economic Development, Coconut Sugar, Financial Feasibility Analysis.