Economic Growth during Covid-19: Empirical Evidence from Buleleng, Bali

Putu Sulasni1*, M. Rudi Irwansyah2, Kadek Rai Suwena3
1Faculty of Economics, Ganesha University of Education, Indonesia
2Faculty of Economics, Ganesha University of Education, Indonesia
3Faculty of Economics, Ganesha University of Education, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2022.5109

Abstract

Economic growth attempts to expand production capacity to achieve additional output, quantified in Gross Domestic Product (GDP) or Gross Regional Domestic Product (GRDP) in a given area. According to constant prices, the agricultural sector’s contribution to Gross Regional Domestic Product (GRDP) in Buleleng Regency is one of the most significant indicators and the largest contributory sector. This study aims to ascertain the magnitude of the agriculture sector’s contribution to economic growth from 2010 to 2020. Simple regression analysis was employed to analyze the data. According to this study, the agricultural sector, as the primary sector, accounts for 98.4% of economic growth in Buleleng, Bali. Buleleng Regency has several advantages that contribute to the region’s superior potential development, one of which is the natural advantage of land suitability for farming. Agriculture in Indonesia is supported by natural resources and the availability of abundant human resources. However, on the other hand, agricultural technology has problems that always make it difficult for farmers every year. Therefore, technological innovation is needed by implementing the Internet of Things (IoT).

Keywords: Agricultural Sector, Economic Growth, GRDP.

References

  • Adisasmita, R. (2011) Pembiayaan Pembangunan Daerah. Yogyakarta: Graha Ilmu.
  • Ariani (2000) ‘Kajian Perubahan Hukum dan Perekonomian pada Era Perdagangan Bebas di Sektor Pertanian’, Jurnal AKTA YUDISIA Universitas Borneo Tarakan, 1(2), pp. 173–194.
  • Asian Development Bank (2019) Asian Development Outlook 2019 Strengthening Disaster Resilience. doi: 10.22617/FLS190070-3.
  • Bakari, S., Tiba, S. and Ofien (2020) ‘Does Agricultural Investment Still Promote Economic Growth In China? Empirical Evidence From Ardl Bounds Testing Model’, International Journal of Food and Agricultural Economics, 8(4), pp. 311–323.
  • Bashir, A. et al. (2018) ‘The Relationship Between Economic Growth, Human Capital, And Agriculture Sector: Empirical Evidence From Indonesia’, Iternational Journal of Food and Agricultural Economics, 6(4), pp. 35–52.
  • Bembok, N., Kapantow, G. H. M. and Rengkung, L. R. (2020) ‘Kontribusi Sektor Pertanian dalam Perekonomian di Kabupaten Minahasa’, Jurnal Agri-SosioEkonomi Unsrat, 16(3), pp. 333–342.
  • BPS (2021a) Gross Regional Domestic Product of Buleleng Regency by Industry 2016-2020, Singaraja.
  • BPS (2021b) Produk Domestik Regional Bruto (Pengeluaran). Available at: https://bulelengkab.bps.go.id/statictable.html (Accessed: 8 April 2021).
  • Cao, K. A. and Birchenall, J. A. (2013) ‘Agricultural Productivity, Structural Change and Economic Growth in Post Reform China’, Journal of Development Economics, 104, pp. 165–180.
  • Chikwama, C. (2014) Agriculture and growth evidence paper series june 2014. UK London: Department for International development, Heriot-Watt University.
  • Dim, C. and Ezenekwe, U. (2013) ‘Does agriculture matter for economic development? Empirical evidence from Nigeria’, Journal of Finance and Economics, 1(1), pp. 61–77.
  • Dumairy (1996) Perekonomian Indonesia. Jakarta: Erlangga.
  • Ebere, C. and Osundina, K. C. (2014) ‘Government expenditure on agriculture and economic growth in Nigeria’, International Journal of Science and Research, 9(3), pp. 188–194.
  • Etikan, I., Musa, S. A. and Alkassim, R. S. (2016) ‘Comparison of Convenience Sampling and Purposive Sampling’, American Journal of Theoretical and Applied Statistics, 5(1), pp. 1–4.
  • FAO-Food and Agriculture Organization of the United Nations (2017) The future of food and agriculture – Trends and challenges. Rome: Food and Agriculture Organization of the United Nations.
  • Gardner, B. (2005) ‘Causes of rural economic development’, Agricultural Economics, 32(1), pp. 21–41.
  • Gooch, E. and Gale, F. (2018) China’s Foreign Agriculture Investments. US: Department of Agriculture, Economic Research Service.
  • Islam, M. S. et al. (2020) ‘Role of Agriculture and Manufacturing Sectors in the Economic Growth of Bangladesh and India: An ARDL Approach’, The Romanian Economic Journal, 78, pp. 89–92.
  • Jatuporn, C. et al. (2011) ‘Does a long-run relationship exist between agriculture and economic growth in Thailand?’, International Journal of Economics and Finance, 3(3), pp. 227-233.
  • Jeongbin, I. and Jeong, I. (2014) ‘The Frame of Agricultural Policy and Recent Major Agricultural Policy in Korea’, FFTC Agricultural Policy Platform (FFTC-AP).
  • Johnson, R. (2017) Agriculture Is Now The Powerhouse Driving Economic Growth In Australia, Agricultural Appointments. Available at: https://www.agri.com.au/agriculture-is-now-the-powerhouse-driving-economic-growth-in-australia/ (Accessed: 8 August 2021).
  • Kaneko, S. and Kawanish, M. (2016) Climate Change Policies and Challenges in Indonesia. Japan: Springer. doi: 10.1007/978-4-431-55994-8.
  • Karen, D. and Sheiner, L. (2018) GDP as a Measure of Economic Well-being. Washington: Hutchins Center on Fiscal & Monetary Policy at Brookings – Harvard University.
  • Katircioglu, T. (2006) ‘Causality between agriculture and economic growth in a small nation under political isolation: A case from North Cyprus’, International Journal of Social Economics, 33(4), pp. 331–343.
  • Kholodova, M. and Krinichnaya, E. (2020) ‘Diversity of the agricultural sector of the Russian economy: regularities of formation and development’, E3S Web of Conferences, 210(13009), pp. 1–9.
  • Kumari, R. and Devadas, V. (2017) ‘Modelling the dynamics of economic development driven by agricultural growth in Patna Region, India’, Journal of Economic Structures, 6(15), pp. 1–27.
  • Kuznets, S. (1961) The Role of Agriculture in Economic Development. London: Oxford University Press.
  • Matthew, A. and Mordecai, D. Ben (2016) ‘The Impact of Agricultural Output on Economic Development in Nigeria (1986-2014)’, Archives of Current Research International, 4(1), pp. 1–10.
  • Ministry of Finance of the Republic of Indonesia (2021) Bali Tetap Kuat di Tengan Pandemi. Available at: https://www.kemenkeu.go.id/publikasi/artikel-dan-opini/bali-tetap-kuat-di-tengah-pandemi/.
  • Myrdal, G. (1984) ‘International inequality and foreign aid in retrospect.’, Pioneers in development, pp. 151-165.
  • Nyamekye, A. P., Tian, Z. and Cheng, F. (2021) ‘Analysis on the Contribution of Agricultural Sector on the Economic Development of Ghana’, Open Journal of Business and Management, 9, pp. 1297–1311.
  • Ogen, O. (2007) ‘The Agricultural Sector and Nigeria’s Development: Comparative Perspective from the Brazilian Agro-Industrial Sector Economy (1960-1995)’, Nebula March 2007@Noble World Archives.
  • Olajide, O. T., Akinlabi, B. H. and Tijani, A. A. (2012) ‘Agricultural resource and economic growth in Nigeria’, European Scientific Journal, 8(22), pp. 103–115.
  • Otchia, C. S. (2014) ‘Agricultural Modernization, Structural Change and Pro-poor Growth: Policy Options for the Democratic Republic of Congo’, Journal of Economic Structures, 3(8), pp. 1–43.
  • Phiri, J. et al. (2020) ‘Agriculture as a Determinant of Zambian Economic Sustainability’, Journal Sustainability, pp. 1–14.
  • Putong, I. (2005) Teori Ekonomi Mikro. Jakarta: Mitra Wacana Media.
  • Rasyid, A. (2016) ‘Analisis Potensi Sektor potensi pertanian dikabupaten Kediri tahun 2010-2014’, Jurnal Ekonomi Pembangunan, 14(2).
  • Sertoğlu, K., Ugural, S. and Bekun, F. V. (2017) ‘The Contribution of Agricultural Sector on Economic Growth of Nigeria’, International Journal of Economics and Financial Issues, 7(1), pp. 547–552.
  • Syahputra, R. (2017) ‘Analisis Faktor Faktor Yang Mempengaruhi Pertumbuhan Ekonomi di Indonesia (1990-2016)’, Jurnal Samudra Ekonomika, 1(2), pp. 183–191.
  • The International Trade Administration. (2020) India-Country Commercial Guide, International Trade Administration website. Available at: https://www.trade.gov/country-commercial-guides/india-agricultural-sector (Accessed: 9 April 2021).
  • The World Bank (2007) Agriculture for Development. World Development Report 2008. Washington, DC.
  • The World Bank (2020) Agriculture and Food: Agriculture can help reduce poverty, raise incomes and improve food security for 80% of the world’s poor, who live in rural areas and work mainly in farming. The World Bank Group is a leading financier of agriculture, The World Bank. Available at: https://www.worldbank.org/en/topic/agriculture/overview (Accessed: 9 April 2021).
  • Todaro, M. and Smith, S. (2003) Economic development (8th Editio). Singapore: Pearson Education.
  • Verter, N. (2015) ‘The application of international trade theories to agriculture’, Mediterranean Journal of Social Sciences, 6(6), pp. 209–219.
  • Verter, N. and Becvarova, V. (2016) ‘The impact of agricultural exports on economic growth in Nigeria’, Acta universitatis agriculturae et silviculturae mendelinate brunensis, p. 64.
  • Wahyuni, E. I. (2020) ‘Pengaruh Sektor Pertanian, Sektor Pariwisata dan Sektor Keuangan Terhadap Pertumbuhan Ekonomi Kabupaten Selayar Periode 2008-2019’, PARADOKS: JURNAL ILMU EKONOMI, 3(4), pp. 161–176.
  • Zulhadi, T. (2009) ‘Kontribusi Sektor Pertanian terhadap Pertumbuhan Ekonomi di Provinsi Riau’, Jurnal Ekonomi Universitas Riau, 17(1).