No abstract

The importance of the ocean economy in island regional development requires the local government to formulate relevant policies according to the potential of its ocean economic activities. Based on the 2012 North Maluku Province I-O table updated to 2016, this study was conducted by aggregating 20 ocean subsectors to measure inter-sectoral linkages, output multipliers, income multipliers, and labor multipliers in the ocean economic sector. The I-O analysis results show that the leading sectors of the ocean economy of North Maluku Province are fisheries, ore mining, and construction. The marine sector which has excellent development potential in the economic development of North Maluku Province is based on the output multiplier, namely the metal ore mining sector, the food, and beverage industry, marine transportation, and the provision of food and beverage. Based on the number of labor multipliers, the education service, construction, and ore mining sectors can absorb high labor compared to other sectors.

The study emphasizes the importance of connectivity in the economic development of the islands of North Maluku province. The research method uses path analysis techniques to explain the causal relationship between connectivity variables, inflation, economic growth, and poverty. The results show a negative relationship between inflation and economic growth, a positive relationship with economic growth, a negative relationship between economic growth and poverty, and a negative relationship between connectivity and poverty. The results emphasize the importance of developing connectivity in archipelagic areas with a high level of vulnerability in their economic development.

The local development approach based on islands is different with the developing of land area. The natural limitations possessed by the islands region that constrained by some characteristics such as isolation, smallness, boundless, and fragmentation. The study analyzes the impact of port connectivity to the local economic development by taking the case in the island province (North Maluku) in east Indonesia. The analysis method using the panel data model of 9 residences in period 2010-2016 in which the indicators that used are GDP, roadway, port throughput, economic density, and also container port, sea-tollway as the dummy variables. According to the common effect, model shows that all independent variables have a significant influence on the GDP except roadway. While based on Hausman test suggest that random effect model is more appropriated than FEM of which the result shows that container port and sea-tollway have not a significant impact on the GDP. These results implied that the policy of port connectivity within sea-tollway is not effective to improve the local economic development in particular in the islands based on region.