Interconnectedness Analysis of Food and Beverage Industry in East Java Province with Moran Index

Abstract

Two important things which is interesting to study about the background of the food and beverage industry in East Java are : (1) the contribution of the food and beverage industry in East Java and (2) East Java Industry in the constellation of national industrial policy. Based on the empirical phenomena as described above, the objectives of this study is identify patterns of interconnectedness on the food and beverage industry in East Java Province. The used analytical tools in this study is Moran Index. The result of Moran's Index analysis with the input of labor force in the food and beverage industry sector in 38 regencies / cities in East Java Province has positive value, indicating that there is inter-regional relation during observation period 2010 (0,256) and 2012 (0,15). Referring to the results of Moran Scatterplot, in 2010 and 2012 it was found that the areas included in Quadrant I - HH (Kediri, Lumajang, Probolinggo, Mojokerto, Lamongan, Bangkalan, Madiun, and Batu) indicate that those area has a high labor force on the food and beverage industry sector.