Abstract

Economic Structure changes in East Java Province has had an impact on the sectoral contribution.The contribution of added value to the Gross Regional Domestic Product from primary, secondary and tertiary sector have had change. The contribution from the primary sector has decreased very slowly, followed the tertiary sector which increased gradually, and contribution of it from the secondary sector has been relatively constant. The changes of economic structure have influenced sectoral specialization and regional specialization in urban area. Using Wilkinson Index for the specialization function of sectoral activities in East Java Province has showed that for urban areas the dominated sector are industries, trade, hotel & restaurant and services,. The quantitave result based on the Structural Equation Model, it proofed that the influence of economic structure changes had an effect on the sectoral and regional specialization and also sructure of labor absorption at urban area in East Java Province. An increase on the economic activities, especially on industrial sector, trade, services, hotel and restaurant mostly used capital intensive rather than labor intensive, it makes the labor absorption are not large enough. To solved this problem, the non basic sector in the urban area which have low growth and small of economic added value contribution should get the priority on their development . Keywords : Changes of Economic structure, added value contribution, absorption of labor, sectoral specialization, regional specialization and structural unemployment.

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