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Jurnal Ekonomi Malaysia

51 (1) 2017 55 – 66

Intersectoral Linkages of Malaysian Batik Industry: An Application of Input-Output Analysis
Rantaian Sektor Industri Batik Malaysia: Aplikasi Analisis Input-Output

School of Social and Economic Development
Universiti Malaysia Terengganu
21030 Kuala Terengganu Terengganu
MALAYSIA

haslin@umt.edu.my

Institute of Agricultural and Food Policy Studies
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

nwi@upm.edu.my

Faculty of Economics and Management
Universiti Putra Malaysi
43400 Serdang Selangor
MALAYSIA

shivee@upm.edu.my

Faculty of Economics and Management
Universiti Putra Malaysi
43400 Serdang Selangor
MALAYSIA

rusmawatisaid@gmail.com

Abstract

This paper examines the contribution of batik industry to the national economy through the idea of inter-industry linkages. Batik industry’s contribution to Malaysian economy is through the performances of the manufacturing in textiles, the development of tourism with being high-valued heritage products, and to the total Malaysian craft sales. The local batik entrepreneurs also require local traders of raw materials for producing batik from abroad to the local market. This shows that batik not only plays a vital role in fostering heritage and cultural, but it has economic values via its contribution to the other production sectors in economy. However, it is difficult to measure the economic contribution of the batik industry because there is no specific data on this industry in the SME Annual Report and the Malaysian Handicraft Annual Report. Thus, we used data from Malaysian Input-Output Table 2010 to measure the industrial linkages of batik industry with other production sector in Malaysian economic structure. It is found that batik industry has backward linkages with other production sectors. This result implies that stimulating growth in the output of the batik industry would benefit other sector through positive spillover effects due to the higher demand on the output of other sectors (e.g. textiles) to be used as inputs by batik firms in producing batik.

Keywords

backward linkages; industrial linkages; input-output analysis; Malaysian batik

Author’s Acknowledgement

This study was funded through Exploratory Research Grant Scheme (ERGS), Ministry of Education Malaysia under research program entitled Creative Industry in Malaysia: The Exploration of the Contribution and Challenges of Batik Industry through Intellectual Property Rights, Job Creation and Financial Assistance (ERGS/1-2013/5527139).

https://doi.org/10.17576/JEM-2017-5101-5
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Mohamad Akhir, , Ismail, N. W., Kaliappan, S., & Said, (2017). Intersectoral Linkages of Malaysian Batik Industry: An Application of Input-Output Analysis. Jurnal Ekonomi Malaysia, 51(1), 55–66. https://doi.org/10.17576/JEM-2017-5101-5

@article{akhir2017intersectoral,
  title={Intersectoral Linkages of Malaysian Batik Industry: An Application of Input-Output Analysis},
  author={Mohamad Akhir, Noor Haslina and Ismail, Normaz Wana and Kaliappan, Shivee and Said, Rusmawati},
  journal={Jurnal Ekonomi Malaysia},
  volume={51},
  number={1},
  pages={55—66},
 

year={2017},
}

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