The Role of Agricultural Sector onthe Economy of West Nusa Tenggara (Input-Output Analysis Approach)

Abstract

The agricultural sector is a sector that has a strategic role in the national economic development structure. The agricultural sector in West Nusa Tenggara is a sub-sector of the regional economy that plays an important role in the formation of GDP. Therefore, the development of agriculture in West Nusa Tenggara is not only intended to accommodate the rural labor and reduce the rate of urbanization but also more oriented to increase farmers' income through increased agricultural products value-added. The purpose of this study is: To analyze the role of agriculture and forward and backward linkage in the economy of West Nusa Tenggara. Additionally, the purpose of this research to analyze multiplier output in the agricultural sector to the economy of West Nusa Tenggara. The data used in this research is data of Input-Output West Nusa Tenggara 2013. The analytical method used is the Input-Output Analysis method. The results show that the sub-sector of food crops which has the output of 7.79 trillion, the highest output in the agricultural sector with a share around 41.7 percent. Onion sub-sector has the numbers backward linkages of the highest, respectively 5.43424 and 6.69614 compared to other sectors in agriculture and other production sectors in the economy. The highest total of Direct Forward Linkages and backward linkages Figures in the agricultural sector is Tobacco sub-sector that Each of 2.44383 and 3.93349. Peanuts have the highest multiplier in the agricultural sector in the province of West Nusa Tenggara the which is equal to 1.69548.Keywords: Agriculture, Input-Output Analysis, Multiplier OutputJEL Classification: O13, P2