Interindustry Linkages in Indonesian Manufacturing1

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Abstract
Deepening and strengthening of the industrial structure one of the prionties of industrial development in Indonesia. In this article, data from input-output tables have been used to examine the interindustry structure of the Indonesian non-oil manufacturing sector. Analysis of structural changes in manufacturing shows thaf exports have become the main engine of growth for the non-oil manufacturing sector. It is also found that this development is not inconsistent with the integration of the manufacturing sector in the economy, as manufactured exports on the whole are characterised by strong backward linkages. Furthermore, the analysis reveals that manufactured exports make significant contribution to employment, because both direct and total labour intensities of Indonesia's expomng sectors are relatively high.

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