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The objective of this paper is to identify the fundamental economic structure (FES)t developed by Jensen, West, and Hewings (1988), in some regional economies in Indonesia. It is found that fundamental economic structure also exists in Indonesian regional economies which cover secondary and tertiary sectors with th? highest significant cells. To some a lesser extent, fundamental economic structure also consists of &>me primary sectors. The accuracy of the model is acceptable using output multiplier and mean average deviation as indicators. The implication of this finding is to make easier for updating and constructing regional input-output tables by concentrating on the non-fundamental economic structure sectors. Therefore, this finding will contribute in reducing cost to construct or update regional input-output tables in the future. |
