—Whether financial structure influences economic
growth is still considered a crucial policy issue. The aims of this
research are to analyze the influence of banking development
indicators, agriculture sector and manufacturing industry
sector on economic growth in Indonesia and to examine the
relationships between banking development and economic
growth. VAR, a time-series econometric model used in this
study, estimating three banking indicators that are assets,
credits and third party fund, economic growth average per
capita at constant price 2000 and two variables of economic
growth in agriculture and manufacturing industry. Two
dummy variabels are also implemented in VAR model, they are
monetary crisis and implementation of Arsitektur Perbankan
Indonesia (API) or Indonesia Banking Architecture. Based on
the two-stage data processing, the research reveals empirical
evidence that banking development, agriculture sector and
manufacturing industry sector affects the economic growth
although the percentage of the contribution are relatively small.
—banking, agriculture sector, industrial sector.
H. M. Lecturer at Faculty of Computer Science and Information
Technology, and Faculty of Economics, Gunadarma University, Depok,
Indonesia., member of IEDRC (e-mail: hennymedya@ yahoo.co.id).
M. Y. Lecturer at Faculty of Economics, Gunadarma University, Depok,
Indonesia, member of IEDRC (e-mail: firstname.lastname@example.org).
Cite:Henny Medyawati, Muhammad Yunanto, and Gunadarma University, "Banking Development, Agriculture and Manufacturing Industry Sector in Economic Growth in Indonesia: Do They Influence?," International Journal of Trade, Economics and Finance vol.2, no.4, pp. 312-317, 2011.