The purpose of this research is to know the linkage of government expenditure and the private investment to output and the gross of value added in Palembang city. The analysis technique used is the input-output model. This research analyze the secondary data which is form the private investment data and the input-output of table of Palembang city in 2006.The result of this research shown that the manufacturing industry sector trading, hotel, and restaurant sectors were the strategic sector in the development plan in Palembang city, that’s shown by the multiplier effect of government expenditure, the establishment constant financial capital and the private investment every rupiah increase in manufacturing industry factor, it will increase the biggest output in manufacturing industry sector in the amount of 1,20979 rupiah, and the smallest output increase in agriculture sector is only 0,00186 rupiah. The increase of the biggest gross value added in manufacturing industry sector is 0,52773 rupiah, and the smallest gross value added also in the agriculture sector that is 0,00143 rupiah. The biggest power of dispersion index is in the manufacturing industry sector that is 1,15032, it can push the development of the backward sectors. The biggest degree of sensitivity index also is manufacturing industry sector is 1,45350, it can stimulate the development of the forward sectors. The smallest power of dispersion index and the degree of sensitivity index are in the mining in amount of 0,80058, it’s means that sector doesn’t have the strong power in influencing the generally activity of economy. Keyword:Government Expenditure, Private Investment, Multipliers Effect, Forward and Backward Linkage.

Published by Universitas Sriwijaya
Journal Name Jurnal Ekonomi Pembangunan
Contact Phone-
Contact Name Abdul Bashir
Contact Email abd.bashir@unsri.ac.id
Location Kab. ogan ilir, Sumatera selatan INDONESIA
Website jep| https://ejournal.unsri.ac.id/index.php/jep|
ISSN ISSN : 18295843, EISSN : 26850788, DOI : 10.29259/jep,
Core Subject Economy,
Meta Subject Economics, Econometrics & Finance,
Meta DescJurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the Department of Development Economics, Faculty of Economics, Universitas Sriwijaya. Editors receive manuscripts of unpublished paper contributions in other journals. JEP is expected to be used as a reference for academicians in writing a scientific, relevant, and dynamic article to enhance the new generation that is found in writing an academic paper.
PenulisMurbarani, Nova
Publisher ArticleDepartment of Development Economics, Universitas Sriwijaya
Subtitle Article Jurnal Ekonomi Pembangunan Vol 7, No 1 (2009): Jurnal Ekonomi Pembangunan
Scholar Googlehttp://scholar.google.com/scholar?q=%2Bintitle%3A&…
View Articlehttps://ejournal.unsri.ac.id/i…
DOIhttps://doi.org/10.29259/jep.v7i1.4…
DOI Number DOI: 10.29259/jep.v7i1.4868
Download Article [1] https://ejournal.unsri.ac.id/index.php/j…
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