Structural Changes and Growth of the Indonesian Fishery, 1975-2010: an Input-Output Perspective

Abstract

Purpose: This paper aims to examine the growth and structural changes of fishery industry in the Indonesian economy. Theoretical framework: The growth of the fishery industry output and the exchange rate of Indonesian fishermen has increase, indicating that there has been a structural change in this industry. Design/methodology/approach: Structural growth and change are analyzed from the perspective of inputs and outputs of the fishery industry, which include: (1) growth and structural changes of the fishery industry from the demand side; (2) growth and changes in the structure of domestic and imported inputs used by the fishery sector; and (3) fishery industry interlinkage. Findings: By employing Input-Output analysis on 8 table series along 1975-2010 of Indonesian economy, this study shows that Indonesian fishery industry is growing year by year, with improved domestic sectoral support and decrease import dependence, as well as analysis of structural changes related to economic growth in very different circumstances of the 1970s and 2000s. Research, Practical & Social implications: The research provides valuable insights into the structural changes and growth of the Indonesian fishery sector over a period of 35 years. This analysis can inform future research on the fishery sector in Indonesia and other similar contexts. The research findings can inform government policies and decision-making related to the fishery sector in Indonesia. The growth of the fishery sector can have a positive impact on the employment and income of people working in the sector, and in the communities dependent on the sector. Originality/value: This study finds that some technology coefficients (direct input coefficient) of fisheries sectors have declining trends, implying that direct backward linkage of fisheries on these industries becomes weakening. These fisheries supporting input among others are: trade, fishery, manufacture of transport equipment and its repair, road transportation.