An Efficient Method for Constructing Regional Input-Output Tables : The Fundamental Economic Structure Approach in Indonesia

The construction regional input-output table needs huge resources in terms of money and time. Sometimes, regional government cannot afford for such purpose. The book offers such efficient method for constructing regional input-output table. The objectives of this study are: a) to identify the fundamental economic structure (FES) in Indonesian regional economies; b) to develop a hybrid method for constructing regional input-output tables using the fundamental economic structure approach; c) to evaluate the performance of the fundamental economic structure approach; and d) to apply the model for constructing regional input-output tables in small regions to two districts in South Kalimantan Province, Indonesia. The FES approach is relatively efficient in terms of using superior data. The results of the study suggest that the fundamental economic structure in Indonesia has similar pattern with other studies such as Australia and South Africa. The results of the evaluation using different tests appear to be consistent across provinces. In most cases, the errors are relatively low on average using different measures.