Three Essays on the Structural Changes and Service Industry of Indonesia: Macro, Meso and Micro Perspectives

Abstract

The objective of the third essay is purposed to reveal interregional structure of regional economies using interregional social accounting matrix. Using 1995 five-region interregional SAM, it was found that self-generating income and output of Jawa is larger than any other macro regions, and the linkages between Jawa and with four other macro regions is stronger than among the four regions themselves. Changes in final demand in Outer-Jawa will generate income and output from Jawa. The decomposition of goods and service sector show that the demand for services was not necessarily generated by internal region, but also indirectly generated through other regions, especially in Jawa. More than 50% demand for services in Other was generated in Jawa.