Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328776 
Year of Publication: 
2023
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 11 [Issue:] 5 [Article No.:] 151 [Year:] 2023 [Pages:] 1-21
Publisher: 
MDPI, Basel
Abstract: 
The global COVID-19 pandemic has suppressed the economy and people's welfare, including in Indonesia and Central Java Province, as indicated by the weakening of the national economy by −2.06 percent and locally by −2.65 percent in 2020. Although the economy grew by 3.32 percent in 2021, societal welfare remains lower than in 2019, marked by an increase in unemployment and poverty throughout 2019-2021. Furthermore, the threat of COVID-19 including new variants of the virus continues to weigh on the economy, in 2022 and beyond. This study considered an industrial approach to production, based on inter-industrial linkages and policy simulations with input-output analysis. The objectives of this research are to analyze the impact of the COVID-19 pandemic on the economy of Central Java and to formulate an effective economic recovery policy for industry. The results show that the industries affected by the COVID-19 pandemic in Central Java can promote recovery of overall income in economic industry better than the leading industry and the industries with the highest output multipliers, expressed as a proportional increase in final demand for each industry. Meanwhile, the economic recovery strategy of increasing final demand in industries with high output multipliers results in a faster increase in economic output compared with increasing final demand in the affected industries or leading industries.
Subjects: 
economic recovery
COVID-19 pandemic
input-output
leading industries
industrial linkage
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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