Jurnal Ekonomi dan Studi Pembangunan, 9 (2),

2017 ISSN 2086-1575 E-ISSN 2502-7115

The Role of Agricultural Sector on the Economy of West Nusa

Tenggara (Input-Output Analysis Approach)

Nurul Marlianti, Wahyunadi, Iwan Harsono

Post Graduate Program University of Mataram
Study Program Economics Science
Email: [email protected]

Received: June 20, 2017; Accepted: September 12, 2017; Published: November 3, 2017
Permalink/DOI: http://dx.doi.org/10.17977/um002v9i22017p176

Abstract

The agricultural sector is a sector that has a strategic role in the national
economic development structure. The agricultural sector in West Nusa
Tenggara is a sub-sector of the regional economy that plays an important role
in the formation of GDP. Therefore, the development of agriculture in West
Nusa Tenggara is not only intended to accommodate the rural labor and
reduce the rate of urbanization but also more oriented to increase farmers'
income through increased agricultural products value-added. The purpose of
this study is: To analyze the role of agriculture and forward and backward
linkage in the economy of West Nusa Tenggara. Additionally, the purpose of
this research to analyze multiplier output in the agricultural sector to the
economy of West Nusa Tenggara. The data used in this research is data of
Input-Output West Nusa Tenggara 2013. The analytical method used is the
Input-Output Analysis method. The results show that the sub-sector of food
crops which has the output of 7.79 trillion, the highest output in the
agricultural sector with a share around 41.7 percent. Onion sub-sector has the
numbers backward linkages of the highest, respectively 5.43424 and 6.69614
compared to other sectors in agriculture and other production sectors in the
economy. The highest total of Direct Forward Linkages and backward
linkages Figures in the agricultural sector is Tobacco sub-sector that Each of
2.44383 and 3.93349. Peanuts have the highest multiplier in the agricultural
sector in the province of West Nusa Tenggara the which is equal to 1.69548.

Keywords: Agriculture, Input-Output Analysis, Multiplier Output

JEL Classification: O13, P25

INTRODUCTION
Indonesia is known as an agrarian country, should rely on the agricultural
sector as an economic source or as a support for development. According to
Dumairy (1996) the structure of the Indonesian economy based on the macro-
sectoral review until the 1990s is still agrarian, but now it has begun to have an
industrial structure. This industrialization has not been supported by high
employment absorption. Until now, the sector that is able to absorb high labor is
the agricultural sector (Khoyanah, 2015).
West Nusa Tenggara Province as one of the provinces which is a region
with an agrarian economic pattern, where most of the people rely their life on the
agricultural sector. This condition can be seen from the high contribution of
agriculture sector to the formation of Gross Regional Domestic Product (GRDP).

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Based on data released by the Central Bureau of Statistics, in 2014 the agricultural
sector contributes 25.69% of the total GDP of West Nusa Tenggara, increasing
than the previous year, 23.26%.
According to Tarigan (2006), the input-output analysis is an analysis of the
region's economy comprehensively because it sees the inter-linkages between
economic sectors in the region as a whole. If a particular sector engages in
production activities, the sector increases its demand for the other sector's
production. Based on these linkages sector leader or leading sector could be
obtained, so that the appropriate policy towards the sector could be taken.
Therefore, a study of the role of the agricultural sector in the economy of West
Nusa Tenggara is necessary, as the largest form of GDP and the largest employer
absorber. The role of the agricultural sector that needs to be known in the above
issues involves inter-sectoral linkages and multiplier impacts of the agricultural
sector so the appropriate policies in agricultural sector could be established in
order to increase economic growth of West Nusa Tenggara.

LITERATURE REVIEW
The agricultural sector is an important sector in the Economic development of
Indonesia. But its also lack Attention from the government so that most of the farmers
are needy. whereas this sector not only supporting in the absorption of manpower but
also where most of the population hanged their life. Up to now, Agriculture in
Indonesia unable to offer maximum results as seen from the farmer's welfare and
national income generated from this sector. Besides of large and diverse natural
resources, in addition to a substantial share of national income, the magnitude of
national exports, and the size of Indonesia's dependent population on this sector, as
well as the role of farmers Providing food for the community.
According to Kuznets (1968); Deliarnov (2005), the agricultural sector
contributes to Growth and national economic development in four forms, namely:
1. Product Contributions, for example, provide raw materials for manufacturing
industries such as textiles, food, beverages, and others.
2. Market Contributions, for example, the establishment of the domestic market
for industrial goods and consumption
3. The contribution of production factors causes the inclusion of the role of
agriculture in Economic development, then the transfer of surplus capital
and agricultural sector to other sectors.
4. The contribution of agricultural income as the most important source for the
surplus balance sheet. Through export of agricultural products and agricultural products that
import products.
5. The role of the agricultural sector in economic development is very important
because the majority of people in poor countries rely on the sector. If the planners are concerned
by their people welfare, then the only way is to improve the welfare of most of the people living
in the agricultural sector. The role of agriculture as the backbone of the national economy is
evident not only in the normal situation but especially in times of crisis.
The success of agricultural development requires several conditions or
conditions for each region to vary. Pre-conditions include technical areas,
economics, socio-cultural and others. According to Mosher (1983), there are five
conditions that must exist in agricultural development (Mubyarto, 1995). If any of

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these conditions are not met then the agricultural development ceases, the
requirements are:
1. There is a market for farm products
2. Technology that always amends
3. Availability of materials and tools of production
4. The existence of production incentives for farmers
5. The availability of clockwork transportation
According to Todaro, (2006) there are three points in the evolution of
agricultural production as follows:
1. Traditional farms with low productivity
2. Agricultural products have started to occur where existing agricultural
products are sold to the commercial sector or the market, but capital and technology use is
still low
3. Modern agriculture with high productivity caused by high capital and
technology use.

LITERATURE REVIEW
The activity of an economic sector cannot be separated from the others, so
a policy that is directly related to a sector will affect the macroeconomics. The
role of the economic sectors is essentially a representation of the interrelationships
between the sectors of the economy whose linkages need to be further analyzed
against other sectors. The overall balance of all sectors of the economy is a unified
system, with equilibrium (or imbalance) in one sector affecting equilibrium or
imbalance in other sectors. Changes in one sector will affect other sectors. The
role of the agricultural sector in West Nusa Tenggara analyze by using input-
output analysis. Analysis of backward linkages and forward is used to determine
the structure of the agricultural sector which in turn can be determined subsectors
are a key sector in the agricultural sector. This study aggregates other sectors in
the economy in addition to the agricultural sector, so it can be seen the effect of
the agricultural sector on the economy as a whole.

AGRICULTURE

INPUT/OUTPUT

FORWARD LINKAGES BACKWARD LINKAGES

MULTIPLIER OUTPUT
ANALYSIS
Figure 1. Conceptual Framework
Source: Research Journal

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METHOD
Method of collecting data
The data collection in scientific research is intended to obtain relevant and
realistic materials. In this study data collection is done by using the documentation
method or literature method study. In this study the data obtained from the Central
Bureau of Statistic of West Nusa Tenggara.

Analysis Method
Input Coefficient
In Table IO, the input coefficient or technological coefficient is the ratio
between the number of sector i outputs used in sector j (Xij) with the total sector
input j (Xj). This coefficient can be translated as the number of inputs of sector i
required to produce one unit of sector output j. Systematically can be written
(Mauludin, 2008):

Aij =

Where: Aij is amount of i sector output which is used as input by j sector.

Thus the matrix can be composed as follows:
a 11 x 1 + a 12 X 2 + ... ... ... ... + a 1n X n + F 1 = X 1
a 21 x 1 + a 22 X 2 + ... ... ... ... + a 1n X n + F 2 = X 2

A n1 n2 X X 1 + a 2 + ... ... ... ... + a n x n + F n = X n

If there is a change in the final request, there will be a change in the pattern of
national income. If it is written in equation, then it can be written as follows:

AX + F = X or F= X – AX X = (I - A)-1 F
Where:
I = Nxn-sized identity matrix whose element contains the number one
on diagonal and zero on the other
F = final demand
X = Output
(HE) = Leontief matrix
(I - A) -1 = Reverse Matrix Leontief
In the IO analysis, Leontief inverse matrix has a very important role as an
analysis tool that reflects the direct and indirect effects of final demand changes to
the output of the sectors in the economy.

Output Change Analysis

To analyze the impact of changes on output subsidies used input-output
models with a supply-side approach. In this analysis, the primary input becomes
exogenous factor. This means economic growth both sectorally and in total are
affected by changes in the primary input (Firmansyah, 2006: 41).
In the model of input - output with supply approach is in column form of
the equation is:
Xj = ∑ +

In algebraic form can be written:

X 1 = z z 11 + 21 + .......... z n1 + V 1

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X 2 = z z 12 + 22 + .......... z n2 + V 2
X n = z z 1n + 2n + .......... z nn + V n
Aij output coefficient values are:

āij = atau Ā = (Ẋ)−1Z

wherein Z is a matrix of transactions that have an element z ij

So
Z=(X)A
Then the results obtained
̅−1

X '= ( − )

X 'indicates that X is vector line, which is the transpose of the column vector
X as before.
A : The output coefficient
V : Vector primary input
̅−1

( − )
: Matrix inverse output
If the fertilizer subsidy is denoted (w), then the output changes caused Due
to (w) change are:
′ ̅−1

∆ =
∆ ( − )

Inter-sector linkages (Backward and Forward Linkage)

Analysis of linkages between sectors divided into backward linkage and
the forward linkages. Both linkages are an analytical tool used to determine the
level of linkage of a sector to other sectors in the economy. The backward
linkages is an analytical tool to determine the degree of relevance of a sector to
other sectors that contribute as an input to it. The linkage to the future is an
analytical tool to determine the degree of linkage between a sector that produces
output, to be used as input for other sectors (Kuncoro, 1997). The backward
linkages formula of a sector can be expressed as follows:
∑−

= =∑

Where:
Lbj : Index of backward linkages
Xj : The value of j-product
Xij : The input value "i" provided for producing "j"
_ij : coefficient input - output Leontief

The coefficient is shown by LBJ as the influence of backward linkages when

> 1 indicates that one unit of final demand sectors will create above-average changes in
overall economic activity. This gives the meaning of the spread of value
> 1, for example, if the final result of the analysis, the index of total backwardness of
the agricultural sector is 1.70458. It can describe that 1.70458 of backward linkages is when
there is an increase of 1 (one) unit of final demand in the sector will lead to an increase in
output amounted to 1.70458. Second types of linkages between sectors in the economy are
the forward linkage. The forward linkage is obtained from the inverse backward link, its
mathematical formulation: (Kuncoro, 1997).
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=∑ −1
To develop the value analysis of the above linkage, then Rassmusen model
is used. This measurement method to determine the intensity of the linkage or
multiplier production.
In some analysis using input-output model Rassmusen method is also
called a power calculation method for distributing the calculation of the effect of
backward linkages. Meanwhile, on the calculation of future linkages, Rassmusen
method is also called as a method of calculating the degree of sensitivity.

Spreading Power
Spreading power shows how much influence the linkage on backward
linkage calculations. By using Rassmusen method, the distribution power
coefficient can be formulated as follows (BPS, 2005: 65).
∑ =1

=
1

∑ ∑

=1 =1

Where
Ɑj : distribution power coefficient
Bij : element of inverse matrix from row i column to j
N : many matrix sectors Criteria
If _j = 1, the backward linkage of the jth sector is equal to the average
backwardness of all economic sectors.
If _j <1, the backward linkages to the sector-j is lower than the average linkages
behind all sectors of the economy.
If _j> 1, the backward linkage of the jth sector above the average of the backward
linkages of all economic sectors. Or the jth sector is gaining high influence from
other sectors.
A sector is said to have a high spreading power if the growth of these
sectors affects other sectors, so it can be called the total of one unit of a sector's
final demand for economic sector growth. The coefficient is shown by _j as the
influence of backward linkages when > 1 gives the meaning that the spread of j
sector is relatively higher than other sectors.

Degree of Sensitivity
The degree of sensitivity shows how much influence the calculation of
future linkages. To know the coefficient of degree of sensitivity as the mean to the
whole is formulated by:

∑ =1

=
1

∑ ∑

=1 =1

Where
Βi : Coefficient degree of sensitivity
Bij : The matrix element is ridiculous from row i column to j
N : Many sectors of the matrix

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criteria
If βi = 1 forward linkages to the sector-i are equal to the average forward linkages
across economic sectors.
If βi <1 forward linkages to the sector-i is lower than the average forward linkages
to all sectors of the economy.
If βi> 1 forward linkages to the sector-i above average forward linkages across
economic sectors. Or the i-th sector high gain influence from other sectors.
The coefficient is shown by βi as influence degree of relatedness to the
front (forward linkages) when > 1 gives the sense that the degree of sensitivity of
the sector i is relatively higher than other sectors which have βi < 1, namely the
production demand other sectors are very influenced by sector i growth.
A sector which the coefficient value ɑj > 1 and βi> 1 is a key sector or can
be said as a leading sector in the region concerned because their forward and
backward linkages are high.

Multiplier Analysis
Output Multiplier Number
The multiplier outputs sector j is the total value of output produced by the
economy to meet (or due to) the change in one unit of final demand in the sector.
The multiplier output is the number of columns of the Leontief inverse matrix
element. Notation, formulated as:
∑

Where
I : 1, 2, ...., n
ɑ ij: Element of Leontief opposite matrix
O ij : Multiplier ɑ sector output j and ij is the Leontief inverse matrix element
Income Multiplier Number
Household income multiplier of a sector shows the changes in the amount
of income received by households that were created by the addition of one unit of
final demand money in a sector. The pathway of the impact of changes in demand
for increased household incomes can be explained by case an increasing final
demand.
The increase in final demand sectors will improve sectoral and total
economic output. This can be measured through the multiplier output. The
increase in output will increase the demand for labor, it will increase remuneration
to households that have the manpower.
Matrix of household income multiplier:
= .

Where:
H R = vector row n + 1, because row n are the property transaction and the
coefficient matrix input

H R = [a n + 1.1 + 1.2 ..... a n a n + 1, n]

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+1

a =, j = 1, 2, 3, ..., n

Where X n + 1h in the formula is the same as the line v (primary input). For
n + 1h each sector, the household income multiplier figure becomes
=∑ + ,
=1

RESULT AND DISCUSSION

Agricultural Sector Output
The output is the value of production produced by units of economic
activity either in the form of goods or services in an area. Assessment is based on
the price at the producer level per unit of production. The output of agriculture is
the total output of all activities in the agricultural sector. In 2013 the output of
agriculture reached 18.67 trillion rupiahs or about 22.77 percent of the total output
created in NTB.

Table 1. Agricultural Output of West Nusa Tenggara

Sector Output (Million Sharing in Sharing to
Rp) Sector (%) Total (%)
1 4.944.118 26,47321725 6,02829
2 1,088,712 5,829494363 1.32745
3 608194 3.256567164 0.74156
4 660.528 3,536790108 0.80586
5 234.331 1.254722812 0.28572
6 256.155 1.371576745 0.31233
Sub Sector of Food Crops 7,792,037 41.72236844 9.50121
7 1.567.118 8.391116632 1.91076
8 90542 0.48480818 0.1104
9 910.260 4.87397819 1.10987
10 312.063 1.67093786 0.38049
11 514193 2,753237543 0.62695
12 185,807 0.994903678 0.22655
13 559730 2,997067479 0.68247
Horticulture Sub-sector 4.139.714 22,16604956 5,04749
14 220.622 1,181318887 0.269
15 919.510 4.923506186 1.12114
16 193.617 1.036719069 0.23607
17 180957 0.968934145 0.22064
18 175.885 0.941773612 0.21445
Sub Sector Plantation 1.690.592 9,052251899 2.0613
19 1.639.182 8.776980463 1.99863
20. 235,233 1.259554273 0.28682
21 235.557 1.2612857 0.28721
22 2,673 0.014314581 0.00326
23 117172 0.627393693 0.14287
24 68.058 0.364413163 0.08298
Sub Sector Livestock 2,297,875 12,30394187 2.80177

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Sector Output (Million Sharing in Sharing to

Rp) Sector (%) Total (%)
25 36497 0.195422743 0.0445
Forestry Sub-sector 36497 0.195422743 0.0445
26 278.596 1.491740608 0.33969
27 481,175 2,576448204 0.58669
28 46.204 0.2473964 0.05634
29 1.913.233 10,24438027 2.33278
Sub Sector Fisheries 2,719,208 14.55996548 3.3155
Agricultural Sector 18.675.923 100 22.77177
Source: Input-Output Table 2013 NTB Province, processed

The food crops sub-sector has an output of 7.79 trillion which is also the
highest output in the agricultural sector with a share of about 41.7 percent. The
food crops sector contributes about 9.50 percent of the output of all economic
sectors in NTB in 2013. Rice commodities have the largest share of food crops
sub-sector of 26.47 percent or about 6.02 percent of the output of all commodities
in NTB Province year 2013. The commodity of tubers has the lowest output in the
food crop sub-sector of 234 billion rupiahs or has a share of 1.25 percent of the
food crop sub-sector and 0.29 percent of the output of all commodities in the
province of NTB in 2013.

Linkage Analysis
Linkage analysis Forward (Forward Linkages)
The index of total forward-looking linkages that have a value greater than
one indicates that the sector has a strong ability to drive the growth of its
downstream output or in other words the ability of the sector to drive production
growth other sectors that use inputs from the sector.
Table 2. Linkage Forward Value
Code Sector Forward Forward Total
Linkage Spread
1 Rice 2.09403 1.34006 3.43409
2 Corn 0.20528 1.51121 1.71649
3 Peanuts 0.35630 1.13959 1.49589
4 Soy 0.53243 1.08176 1.61419
5 Plant Tuber 0.25911 1.09348 1.35259
6 Other Food Crops 0.20301 1.28963 1.49264
7 Red onion 0.62577 1.53890 2.16467
8 Tomato 0.35997 0.91821 1.27818
9 Chili 0.43545 1,24234 1.67779
10 Other Vegetables 0.41778 0.91821 1.33599
11 Mango 0.20834 0.79306 1.00140
12 Pineapple 0.26629 0.79306 1.05935
13 Other Fruits 0.35444 0.79306 1.14750
14 Coconut 0.89670 0.82508 1.72178
15 Tobacco 2.44383 1.48966 3,93349
16 Cashew 0.69989 1,21519 1.91508
17 Coffee 0.48969 0.74627 1,23596
18 Other Plantation Plants 0.40448 0.67508 1.07956

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Code Sector Forward Forward Total

Linkage Spread
19 Cow 0.74035 0.77272 1.51307
20 Buffalo 0.37810 0.88955 1,26765
21 Other animals and the 0.61061 1.03872 1.64933
results
22 Laying Chickens 2.26087 1.11962 3.38049
23 Chicken broiler 2.08344 1.12958 3.21302
24 Poultry and the results 1.89339 1.29036 3.18375
25 Wood and other forest 1.14624 1.06079 2.20703
products
26 Seaweed 0.18017 1.55104 1.73121
27 Marine fisheries 1,23388 1.40970 2.64358
28 Breeding of milkfish 0.65221 1.50145 2.15366
29 Other Land Fishing 0.32751 1.50145 1.82896
Source: Input-Output Table 2013 province, processed

Results of direct forward linkage analysis on the agricultural sector of West

Nusa Tenggara Province in 2013 shows that tobacco has the highest index value about
2.44383. This value indicates that if an increase in final demand on other sectors by
one unit the tobacco sector will experience an increase in output of 2.44383 units.
This shows the role of the sector in providing the output it generates for use as input
by other sectors in the production process and used to meet substantial final demand.
While the highest index value of indirect forward linkage is the seaweed sector about
1.55104. The value indicates that if there is an increase in output of one unit of output
it will increase the output of other sectors by 1.55104.
Grounded on table values linkage forward total agricultural sector, we can
see that all sub-sectors of agriculture to the economy of West Nusa Tenggara has
the index value greater than one ( > 1), which means that all sub-sectors of
agriculture are the sectors that able to increase Production growth of other sectors.
From the analysis of forward linkages input output table that have been
done, the sector that has the highest forward linkages are tobacco sector is equal to
3.93349. Tobacco is a sector that has a direct impact to generate output in
improving the economy of other sectors in regional development in West Nusa
Tenggara without neglecting other sectors in order to revitalize agriculture.

Backward linkage analysis

Analysis of backward linkages is used to see the impact of changes in final
demand for the output of a sector in all economic sectors in the region. Backward
linkage is related to raw materials. In the results of the analysis of backward
linkages will be known direct and indirect linkage and total backward linkages.

Table 3. Backward linkages Values

Code Sector Backward Backward Total
Linkage Spread
1 Rice 0.64246 1.65340 2.29586
2 Corn 0.48564 1.43645 1.92209
3 Peanuts 0.50660 1.62857 2.13517
4 Soy 0.53197 1.58766 2.11963

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Code Sector Backward Backward Total

Linkage Spread
5 Plant Tuber 0.24644 1.64773 1.89417
6 Other Food Crops 0.63315 1.07074 1.70389
7 Onion 5.43424 1.26190 6,69614
8 Tomato 1.24914 0.91101 2.16015
9 Chili 0.76695 1.51891 2.28586
10 Other Vegetables 0.66429 0.91161 1.57590
11 Mango 0.43395 0.72831 1.16226
12 Pineapple 0.51545 0.72819 1.24364
13 Other Fruits 0.69285 0.72796 1.42081
14 Coconut 0.26486 1.61302 1.87788
15 Tobacco 0.21111 1.59712 1.80823
16 Cashew 0.37501 1.65329 2.02830
17 Coffee 0.77562 1.02785 1.80347
18 Other Plantation Plants 0.78331 0.84828 1,63159
19 Cow 0.52753 1.56880 2.09633
20. Buffalo 0.54112 1.42158 1.96270
21 Other animals and the results 0.85810 1.52775 2.38585
22 Laying Chickens 1.25412 0.82787 2.08199
23 Chicken broiler 1.64159 0.88020 2.52179
24 Poultry and the results 1.82203 0.86553 2.68756
25 Wood and other forest 0.20841 1.07223 1,28064
products
26 Seaweed 0.37622 1.66129 2.03751
27 Marine fisheries 0.28315 1.24211 1.52526
28 Breeding of milkfish 1.56078 1.11792 2.67870
29 Other Land Fishing 1.14745 1,12085 2.26830
Source: Input-Output Table 2013 province, processed

Onion is the sector which has the highest directly backward linkage index
value at 5.43424, which mean that if there is a final demand increase of the onion
sector by one unit then for other economic sectors in West Nusa Tenggara will
experience growth in output about 5.43424 units. So do the others sectors of
agriculture which have an index value of directly backward linkages greater than
one. Agricultural sectors that have a high deployment Indicating the sector has
stronger impetus power than the other sector.
The sector that has the highest value of indirect backward linkages in the
agricultural sector, namely the seaweed. This shows that the seaweed sector has
the greatest relation with the upstream production sector. If there is an increase in
the final demand seaweed sector by 1 unit will require additional input from the
sector and other sectors amounted to 1.66129 units.
The results of total backward linkage analysis input-output table above, it can
be seen that the sector has the highest backward linkages is onion sector. With the
results of this analysis, it can be said that the increase of 1output on the onion sector
will have a greater impact on the economy when compared with the impact that
caused the increase of 1 output of other sectors. Figures 6.69614 means that an
increase of 1 onion sector output will increase its input demand either directly or
indirectly on the other sectors of the economy (including onion sector itself) Rp.

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6.69614. To meet the demand for the onion sector, the sectors in the economy
(including the onion sector itself) will increase production by that number.
From the analysis of backward linkages and linkage to the front (forward
linkages) West Nusa Tenggara showed that all sub-sectors of Agriculture of West
Nusa Tenggara has a value linkage to the rear and linkage forward on one (> 1),
which Means that the agricultural sector is a potential sector in the economy of
West Nusa Tenggara.

Multiplier Analysis
Multiplier Analysis (multiplier effect) is an analysis to calculate the total
value of production of all sectors of the economy that is necessary to meet final
demand value of output, income and employment sector.
Table 4. Multiplier Effect
Code Sector Output Income Employment
1 Rice 6,02829 6.36335 4.81052
2 Corn 1.32745 1.58563 0.74433
3 Peanuts 0.74156 0.88189 2.08414
4 Soy 0.80586 0.95322 0.45097
5 Plant Tuber 0.28572 0.35845 0.16167
6 Other food crops 0.31233 0.36150 0.17560
7 Red onion 1.91076 (0.09199) (3,10380)
8 Tomato 0.11040 0.11070 0.06718
9 Chili 1.10987 1.24733 0.83130
10 Other vegetables 0.38049 0.43743 0.22972
11 Mango 0.62695 0.75702 0.17746
12 Pineapple 0.22655 0.26892 0.08020
13 Other fruits 0.68247 0.77970 0.22916
14 Coconut 0.26900 0.33623 .13958
15 Tobacco 1.12114 1.41649 0.74948
16 Cashew 0.23607 0.28855 0.20713
17 Coffee 0.22064 0.24748 0.15403
18 Other plantations 0.21445 0.24013 0.12695
19 Cow 1.99863 2.36632 1.81191
20. Buffalo 0.28682 0.33860 0.25965
21 Other animals and the results 0.28721 0.31621 0.20514
22 Laying Chickens 0.00326 0.00326 0.00125
23 Chicken broiler 0.14287 0.12918 0.04988
24 Poultry and Results 0.08298 0.07127 0.02729
25 Wood and other forest 0.04450 0.05625 0.02760
products
26 Seaweed 0.33969 0.41509 0.17398
27 Sea Fisheries 0.58669 0.73063 0.85027
28 Breeding of milkfish 0.05634 0.05208 0.03735
29 Other terrestrial fisheries 2.33278 2.39881 4.19549
Source: Input-Output Table 2013 province, processed

The sector that has the highest value for the impact multiplier analysis on
output, revenue, and rate of employment is the rice sector. The highest value indicates
that the output of rice sector used by most of other sectors and has a major effect to
increase output for other sectors. The highest multiplier impact on income

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is rice sector, explaining that output from the rice sector is used in most other
sectors to increase revenues in each sector. While the analysis of the highest
number of employment multipliers is also obtained by the rice sector which states
that the output produced in the rice sector used in other sectors will be able to
increase employment opportunities for these sectors.

CONCLUSION
The largest sub-sector in agriculture sector is food crop sub-sector with the
output of 7.79 trillions which is also the highest output in the agriculture sector
with a share of about 41.7 percent. The food crops sector contributes about 9.50
percent of the output of all economic sectors in NTB in 2013. The impact of
backward and forward linkages. In 2013 there were seven sectors that have an
index linkage forward more than one, namely the tobacco sector, laying chicken
sector, broilers sector, rice sector, the poultry sector and its results, timber and
other forest products and sectors marine fisheries. The output generated by the
sector is an intermediary commodity, in that it is a raw material for industries and
other sectors of the economy.
In 2013 there were seven sectors that have the index backward linkages
more than one, namely the tobacco sector, the sector of the tomato, laying chicken
sector, broiler sector, poultry sector and its results, milkfish cultivation and other
land fisheries sector. Agricultural sectors have a high spread, indicates that the
sector has a strong impetus compared to other sectors. From the analysis of
backward linkages and forward linkages, West Nusa Tenggara indicates that all
sub-sectors of Agriculture has backward and forward linkage greater than one (>
1), which means the agricultural sector is a potential sector (a key sector) in the
economy of West Nusa Tenggara. The results of the multiplier analysis
(multiplier effect) can be seen that the most influence sectors on the increase of
agricultural sector is Rice sector, so that the most affect in revenue excalation
(income) is the rice sector, and so do the most affect in excalation of work chance
(employment) in the agricultural is Rice sector.
Then the advice that can be given as follows: All sub-sectors of the
agricultural should give more attention in its development as the Agriculture has
the power to push and backward linkages above average, so it will be able to
encourage the development of other economic sectors. The Government of West
Nusa Tenggara, especially BAPPEDA, if they want to increase incomes and
reduce unemployment in West Nusa Tenggara, the entire sub-sector in the
agricultural sector is a potential sector to achieve these objectives. Based on the
results of the multiplier analysis it can be seen that the rice sub-sector has a
relatively high value for each value of the multiplier, therefor rice sub-sector is
one of the priority sectors which can be used as a reference for the promotion of
economic growth in West Nusa Tenggara. The government of West Nusa
Tenggara expected to provide a special regulation to keep the potential sectors.
For further research should add some more analysis that can actually analyze a
role of the agricultural sector to the economy of West Nusa Tenggara.

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