Abstract:
This paper reported an evaluated of a hybrid procedure in GIRIOT (Generation Inter-Regional
Input-Output Table) applied for an Island economy of Indonesia. The model was then up-dated
using Indonesian data for the year 2015. GIRlOT combines and modifies the GRIT II and GRIT
III procedures developed at The University of Queensland. At least three aspects of the new
procedure are different to GRIT; the hybrid procedure designed for a mainland economy in a
developed country. GRIT uses national technical coefficients. GIRlOT adjusts regional
technology differences since in an island country like Indonesia; regional diversity exists in its
ecology, economy and culture. GRIT uses LQ (Location Quotient) techniques. GIRIOT
estimates the intra-regional input coefficients by employing the generalised RSP (Regional
Supply Percentage) and uses column-only as well as row-only approaches. The two approaches
are then reconciled. GIRlOT also estimates the inter-regional input coefficients using the interisland
transport pattern of commodity groups for primary and secondary sectors and the pattern
of population distribution for the non-zero imports of service sectors. The GIRIOT procedure
consists of three stages, seven phases and twenty four steps. Stage I: Estimation of Regional
Technical Coefficients, consists of two phases, namely Phase 1: Derivation of National
Technical Coefficients and Phase 2: Adjustment for Regional Technology. Stage II: Estimation
of Regional Input Coefficients, consists of two phases, namely Phase 3: Estimation of Intraregional
Input Coefficients, and Phase 4: Estimation of Inter-regional Input Coefficients, and
Stage III: Derivation Transaction Tables, consists of three phases, namely Phase 5: Derivation of
Initial Transaction Tables, Phase 6: Sectoral Aggregation, and Phase 7: Derivation of Final
Transaction Tables. The results were two 5 region-9 sector models; row only table and column
only table. The validity of the two tables was tested using professional judgment as well as
sensitivity test of multipliers resulted yang the models. |
International Journal of Social Science & Economic Research
