The Influence of International Trade on Industrial Sector (a Study at Batam Indonesia Free Zone Authority, Periods of 2002-2012)

Fitria Intan Ayuningtias • Suhadak Suhadak • Nila Firdausi Nuzula
Journal article Jurnal Administrasi Bisnis S1 Universitas Brawijaya • November 2016 Indonesia

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Abstract

As Free Trade Zone, Batam strive to defend the existency in International trade. The International trade consists of export and import activities (Ball, 2006:37). The existence of export and import activities are expected to reach the optimal economic growth, as well as give positive impact on the amount of employment in process of productivity. The economic growth and employment as measurement indicator of industrial sector (Glaeser, 1992:20). Industrial sector is very important to strengthen the economic structure and foreign exchange, expanding employment, reducing the dependence on foreign product, and improving the SMEs (Utoyo, 2006:90). This research is focus on the research question as does export has influence on economic growth in Batam, does export has influence on employment in Batam, does import has influence on economic growth in Batam, and does import has influence on employment in Batam. This research used annual time series data from 2002-2012, the data was obtained from Batam Indonesian Free Trade Zone (BIFZA). The research shows that, the export does not has significant influence on economic growth as well as the import does not has significant influence on economic growth. But the other side, the export has positive significant influence on employment and the import also has significant influence on employment. The dominant variable in influencing the industrial sector is export-import on the employment and the determination coefficient is 92.6%.

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Jurnal Administrasi Bisnis S1 Universitas Brawijaya

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