Impact of PDRB on Agriculture Sector, Farmers Exchange Value, Investment and Agricultural Land Area on Labour Absorption in Agricultural Sector in Central Java Province
Keywords:
PDRB Agriculture Sector, Farmers Exchange Value, Investment, Land Area, Labour Absorption
Abstract
One of the important components in measuring the growth and sustainability of a country's economy is the absorption of labor. Central Java Province, which is known as one of the main agricultural centers in Indonesia, has many diverse variables that affect the absorption of labor in agriculture. This study investigates how the GDP of the agricultural sector, farmers' exchange rate, investment, and agricultural land area affect the absorption of labor in the agricultural sector of Central Java Province. This research method uses a quantitative approach with multiple regression analysis of secondary data collected from various sources from 2013-2023. The results of the analysis show that the GDP of the agricultural sector with a significance value of 0.025, the farmer exchange rate with a significance value of 0.000 and the area of agricultural land with a significance value of 0.000 have a significant influence on labor absorption, while investment with a significance value of 0.353 has no significant influence on labor absorption. Although not directly significant, investment also plays an important role in employment dynamics. This study shows that to improve people's welfare and strengthen the regional economy in Central Java Province, there is a need for policies that support agricultural economic growth, price stability of agricultural products, and investment development that focuses on the creation of direct jobs in the agricultural sector.
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References
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Achsani, N. A. , Tambunan, M. , & Mulyo, S. A. (2012). Impact of fiscal policy on the agricultural development in an emerging economy: Case study from the South Sulawesi, Indonesia. . International Research Journal of Finance and Economics, 96, 101–112.
Arham, M. A. , & Dai, S. I. (2020). Does agricultural performance contribute to rural poverty reduction in Indonesia?. . JEJAK: Jurnal Ekonomi Dan Kebijakan, 13(`), 69–83.
Arida, A. , Zakiah, Z. , & Julaini, J. (2015). Analisis permintaan dan penawaran tenaga kerja pada sektor pertanian di Provinsi Aceh. . Jurnal Agrisep, 16(1), 66–78.
Bilenko, Y. (2022). Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries. . Agricultural and Resource Economics: International Scientific E-Journal, 8(4), 5–32.
BPS Provinsi Jawa Tengah. (2024). Provinsi Jawa Tengah Dalam Angka 2024.
Budiawan, A. (2013). Faktor-faktor yang mempengaruhi penyerapan tenaga kerja terhadap industri kecil pengolahan ikan di Kabupaten Demak. Economics Development Analysis Journal, 2(1).
Cornia, G. A. (1985). Farm size, land yields and the agricultural production function: An analysis for fifteen developing countries. . World Development, 13(4), 513–534.
Deininger, K. (2011). Challenges posed by the new wave of farmland investment. . The Journal of Peasant Studies, 38(2), 217–247.
Diao, X. , Nwafor, M. , Alpuerto, V. , Akramov, K. , & Salau, S. (2010). Agricultural growth and investment options for poverty reduction in Nigeria (No. 954).
Dwiputri, A. A. , Fatmawati, F. , & Suhab, S. (2023). Determinant Analysis of Labor Absorption in the Agricultural Sector in South Sulawesi Province (1999-2019). . Jambura Equilibrium Journal, 5(1), 27–36.
Epaphra, M. , & Mwakalasya, A. H. (2017). Analysis of foreign direct investment, agricultural sector and economic growth in Tanzania. . Modern Economy, 8(01), 111–140.
Giller, K. E. , Delaune, T. , Silva, J. V. , Descheemaeker, K. , van de Ven, G. , Schut, A. G. , . . ., & van Ittersum, M. K. (2021). The future of farming: Who will produce our food?. . Food Security, 13(5), 1073–1099.
Gujarati, D. N. , & Porter, D. C. (2009). Basic econometrics. . McGraw-hill.
Hair Jr, J. F. , Sarstedt, M. , Hopkins, L. , & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. . European Business Review, 26(2), 106–121.
Hanani, N. , Toiba, H. , Asmara, R. , Nugroho, T. W. , Andajani, T. K. , Nugroho, C. P. , . . ., & Andrianto, B. (2023). Pengantar ekonomi pertanian. . Universitas Brawijaya Press.
Iskandar, I. (2023). PENGARUH PDB SEKTOR PERTANIAN, NILAI TUKAR PETANI DAN INVESTASI SEKTOR PERTANIAN TERHADAP PENYERAPAN TENAGA KERJA SEKTOR PERTANIAN DI INDONESIA. . Jurnal Samudra Ekonomika, 7(1), 204–214.
Kusmiyati, D. , & Utami, W. B. (2022). Pengaruh Modal, Tenaga Kerja, dan Luasan Lahan terhadap Pendapatan Petani Padi di Desa. . Jurnal Ilmiah Keuangan Akuntansi Bisnis (JIKAB), 1(2), 81–88.
Loizou, E. , Karelakis, C. , Galanopoulos, K. , & Mattas, K. (2019). The role of agriculture as a development tool for a regional economy. . Agricultural Systems, 173, 482–490.
Matsuyama, K. (1992). Agricultural productivity, comparative advantage, and economic growth. . Journal of Economic Theory, 58(2), 317-334., 58(2), 317–334.
McArthur, J. W. , & McCord, G. C. (2017). Fertilizing growth: Agricultural inputs and their effects in economic development. . Journal of Development Economics, 127, 133–152.
Midi, H. , Sarkar, S. K. , & Rana, S. (2010). Collinearity diagnostics of binary logistic regression model. . Journal of Interdisciplinary Mathematics, 13(3), 253–267.
Munasinghe, M. , & Cruz, W. (1995). Economywide policies and the environment (Vol. 10).
Muslim, C. (2017). Nilai Tukar Petani Komoditas Perkebunan. . SEPA: Jurnal Sosial Ekonomi Pertanian Dan Agribisnis, 13(2), 142–158.
Novikova, T. S. (2022). Investments in research infrastructure on the project level: Problems, methods and mechanisms. . Evaluation and Program Planning, 91, 102018.
Pingali, P. (2007). Agricultural growth and economic development: a view through the globalization lens. . Agricultural Economics, 37, 1–12.
Pujiyanto, M. A. (2021). Kontribusi Sektor Pertanian Terhadap Perekonomian Provinsi Sumatera Selatan Sebelum dan Pada Saat Pandemi COVID-19 [Thesis dissertation]. Universitas Gadjah Mada.
Pujiyanto, M. A. , Darwanto, D. H. , & Mulyo, J. H. (2022). Leading Agricultural Subsectors in South Sumatra Province Before and During The COVID-19 Pandemic. . Agro Ekonomi, 33(1), 45–59.
Puspadjuita, E. A. (2018). Factors that influence the rate of unemployment in Indonesia. . International Journal of Economics and Finance, 10(1), 140–147.
Ranis, G. , & Fei, J. C. (1961). A theory of economic development. . The American Economic Review, 533–563.
Safrida, S. , Juliaviani, N. , Deli, A. , & Isma, L. (2022). Potensi Sektor Pertanian Dan Pengaruhnya Terhadap Penyerapan Tenaga Kerja di Provinsi Aceh. . JSEP (Journal of Social and Agricultural Economics), 15(3), 271–278.
Schmitz, A. , & Moss, C. B. (2015). Mechanized agriculture: Machine adoption, farm size, and labor displacement.
Sims, B. , & Kienzle, J. (2016). Making mechanization accessible to smallholder farmers in sub-Saharan Africa. . Environments, 3(2), 11.
Solekan, M., Pujiaynto, M. A. , Kinding, D. P. N. , & Sarno. (2023). ANALISIS SUB SEKTOR PERTANIAN UNGGULAN DI PROVINSI KALIMANTAN SELATAN TAHUN 2017-2022. Jurnal Ilmiah Media Agrosains, 9(1), 1-8., 9(1), 1–8.
Tanjung, G. S. , Pujiyanto, M. A. , Farichah, L. , & Anggraini, F. E. (2022). Potensi Sektor Pertanian dalam Prioritas Pembangunan Ekonomi Kabupaten Belitung. . Jurnal Pertanian Cemara, 19(2), 110–123.
Verbeek, M. (2017). A guide to modern econometrics. . John Wiley & Sons.
Published
2024-08-10
How to Cite
Pujiyanto, M. (2024). Impact of PDRB on Agriculture Sector, Farmers Exchange Value, Investment and Agricultural Land Area on Labour Absorption in Agricultural Sector in Central Java Province. AGRIMOR, 9(3), 121-127. https://doi.org/https://doi.org/10.32938/ag.v9i3.2539
Section
Original research article
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