The Impacts Analysis of Creative-Products Export on the Economy

Muhammad Sukma, Djoni Hartono, Socia Prihawantoro

Abstract


The increase of export value of creative industry in the middle of the declining export value of Indonesia's leading commodities during the period of 2011 to 2015 indicates that the creative industry potentially encourages the economic growth in Indonesia. This study aims to observe the linkages of creative industries, both forward and backward linkages, with other sectors in the economy. This study also examines the impacts of the increasing export on the fashion and craft sectors, as the two largest contributors to the export of creative industries, towards the Indonesian economy. Applying the Input-Output approach, the influence of the export of fashion and craft sectors towards the Indonesian economy is seen from the multiplier effects on the increasing value added, community income and labor absorption. The results show that fashion exports increased the national value added by 0.06%; community income 0.06% and employment 0.11%. Similarly, craft exports increased the national value added by 0.05%; income by 0.05% and employment by 0.11%. The largest increase is in the labor absorption; this is because the fashion and craft sectors are labor intensive sectors.


Keywords


Export, Fashion Sector, Craft Sector, Creative Economy, Input-Output Model

Full Text:

PDF

References


Afonso, O. (2001). The Impact of International Trade on Economic Growth. Investigação–Trabalhos em Curso, 106.

Creative Economy Agency / The Creative Economy Agency. (2016a). Report on the Creation of Export of Creative Economy 2010-2015. Jakarta: Creative Economy Agency.

Creative Economy Agency / The Creative Economy Agency. (2016b). Report on Creating Creative Economy GDP 2010-2015. Jakarta: Creative Economy Agency.

Creative Economy Agency / The Creative Economy Agency. (2016c). Employment Economic Working Report 2010-2015. Jakarta: Creative Economy Agency.

Central Bureau of Statistics. (2017). Economic and Trade Data. Retrieved from https://www.bps.go.id/linkTabelStatis/view/id/1002

Chen, S. W. (2007). Exactly what is the link between export and growth in Taiwan? New evidence from the Granger causality test. Economics Bulletin 6(7), 1-10.

Creative Industries Research and Applications Centre. (2005). Mapping Queensland's Creative Industries: Economic Fundamentals. Queensland University of Technology.

Daubaraite, U., & Startiene, G. (2015). Creative Industries impact on national economy in regard to sub sectors. Procedia - Social and Behavioral Sciences 213, 129-134.

DCMS. (2013). Classifying and measuring the creative industries consultation on proposed change. London: Department for Culture, Media and Sport.

Ekanyake, E. (1999). Exports and Economic Growth in Asian Developing Countries: Cointegration and Error-Correction Models. Journal of Economic Development, 24(2), 43-56.

Experian. (2007). How linked are the UK's creative industries to the wider economy?: An input output analysis.

Ghazi, E. L., & Goede, M. (2017). Creative economy assesment; a case study of Kish Island. International Journal of Social Economics, 1940-1956.

Hartono, D. (2003). The Role of Service Sector on Indonesian Economy: Input-Output Analysis. Journal of Economics and Development of Indonesia 6 (1), 39-57.

Hascaryotomo, Y. W. (2011). A review of the relationship between export growth and economic growth in Indonesia. Depok: University of Indonesia.

Hatemi-J, A., & Irandoust, M. (2000). Export Performance and Economic Growth Causality: An Empirical Analysis. Atlantic Economic Journal 28(4), 412-426.

Howkins, J. (2001). The Creative Economy: How People Make Money From Ideas. London: Penguin Press.

Iqbal, A., Hameed, I., & Devi, K. (2012). Relationship between Exports and Economic Growth of Pakistan. European Journal of Social Sciences 32(3), 453-460.

Ministry of Tourism and Creative Economy / Ministry of Tourism and Creative Economy. (2014). Creative Economy: Indonesia's New Strength Towards 2025. Jakarta: Ministry of Tourism and Creative Economy of Indonesia

Kisfaludy, M. (2008). Fashion and Innovation. Acta Polytechnica Hungarica 5(3), 59-64.

Lam, R. C. (2013). Export and growth: a linkage effect perspective. International Journal of Development Issues, 12(1), 53-66.

Loizou, E., Chatzitheodoridis, F., Michailidis, A., Tsakiri, M., & Theodossiou, G. (2015). Linkages of the energy sector in the Greek economy; The input-output approach. International Journal of Energy Sector Management (93), 394-411.

Miller, R. E., & Blair, P. D. (2009). Input-Output Analysis Foundations and Extensions. Cambridge: Cambridge University Press.

Pan, Y., Roedl, D., Blevis, E., & Thomas, J. C. (2015). Fashion Thinking: Fashion Practices and Sustainable Interaction Design. International Journal of Design 9(1), 53-66.

Prihawantoro, S., & Anafi, A. T. (2016). The Role of the Creative Economy in Indonesia's Economic Structure: Input-Output Approach. Technical Report TFP and Input-Output Assessment Program, Agency for Assessment and Application of Technology.

Roshan, S. A. (2007). Export Linkage to Economic Growth: Evidence from Iran. International Journal of Development Issues, 6(1), 38-49.

Slehoferova, M. (2014). Creative Industries in an Economic Point of View the Use of Input Output Analysis. 5th Central European Conference in Regional Science (CERS), 890-899.

Xikang, C., Cheng, L. K., Fung, K., Lau, L. J., Sung, Y. W., K.Zhu, Duan, Y. (2012). Domestic value added and employment generated by Chinese exports: A quantitative estimation. China Economic Review, 850-864.

Xu, T., Baosheng, Z., Lianyong, F., Masri, M., & Honarvar, A. (2011). Economic impacts and challenges of China's petroleum industry: An input-output analysis. Energy 36, 2905-2911.

Zubdi, U. (2012). Analyzing the influence of creative industry sector to the national economic structural changes by the decomposition analysis: The case of Indonesia. Procedia - Social and Bahavioral Science 65, 980-985.




DOI: https://doi.org/10.15294/jejak.v11i1.11337

Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.