Analyzing the roles of the construction sector by using multiplier analyses: The cases of Indonesia and Japan

Abstract

This study aims to analyze the roles of the constructionsector in the Indonesian and Japanese national economies by employing simple output and simple household income multipliers, the analysis devices in the analysis of Input-Output (IO). The analysis periods of the study are 2010 and 2011. The former year is an analysis period for the case of Indonesia while the Japanese case utilizes the latter one.The study uses2010 Indonesian and 2011 Japanese IO tables as data.The results show that, by utilizing simple output multiplier, the discussed sector included in the top five sectors for both cases on the analysis periods. Based on the results, one can say that the sector had the important positions in the national economies of both countries on the periods of analysis. On the other hand, by using simple household income multiplier,the analyzed sector included in the top five sectors on the analysis period for the Japanese case.