GROWTH OF OIL/GAS AND NON OIL/GAS TRADE SECTORS: THE IMPACT ON LABOR-FORCE PARTICIPATION RATES IN INDONESIA

 

GROWTH OF OIL/GAS AND NON OIL/GAS TRADE SECTORS: THE IMPACT ON LABOR-FORCE PARTICIPATION RATES IN INDONESIA

Andi Sessu, Sessu

Export trade balance, oil and non-oil imports, Indonesia is in an active state or economy to prosper, while the
results of multiple regression analysis showed that the export of non oil/gas, non oil/gas import, oil and gas
imports and economic growth positive effect on the labor force participation rate, which means every increased
four variables also increased labor force participation rate, while oil and gas exports have negative effect
means that any increased export of oil and gas resulting in a decline in labor force participation rates and
significant effect of all the variables of the labor force participation rate in Indonesia. Multiple correlation
coefficients obtained r = 0.998 shows the effect of variable export of non oil/gas, non oil/gas import, export of
oil and gas, oil and gas imports, economic growth together very strong and the coefficient of determination
together the five variables can be R = 0.996 shows the percentage contribution of influence together of 99%
means that only 0.01% contribution of other variables influence the level of labor force participation in
Indonesia. It can be concluded that the development of oil and gas trade and non-oil and gas in Indonesia still
need cooperation between individual communities, private sector, civil society and government in an effort to
increase trade in Indonesia, because it is very big influence on the labor force participation rate that could
lower the unemployment rate and can automatically reducing poverty, because unemployment and poverty in
Indonesia is still high when compared with some other countries in the world.

Silahkan Unduh Disini!

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