Marine Fisheries Sector in Promoting Industrial Growth and Labor Absorption in Gorontalo Province, Indonesia

Abstract

The contribution of agriculture, service, industry, trade, and finance sectors have numerous impacts in improving economics in a certain region for example in Gorontalo province of Indonesia. With its excellent programs in the agricultural sector, particularly the fisheries sub-sector, it is expected that it could trigger the other service sectors, especially in labor and industry. In analyzing the level of production that is created from marine fisheries sector, there should be a change in final demand which can be developed through the analysis of output multiplier. By analyzing the output multiplier of marine fisheries, it can be seen how much the contribution of marine fisheries sector is in supporting economic growth in Gorontalo province. From the analysis of the labor coefficient, it is obtained that the marine fisheries sector contributes 0.1571. It means that in order to produce one Rupiah (Indonesian Currency) of output, it needs 0.1571 fisheries sector workforce. The higher the coefficient of the labor sector, the higher absorption of labor in the concerned sector is needed. High labor coefficient generally occur in labor-intensive sectors, while the low coefficient of labor generally occurs in capital-intensive production process sectors which are done by utilizing high technology.

Keywords: Marine fisheries, Industrial growth, Labor absorption