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Economic Theory Analysis
Grand Theory of Economic Development
Economic development theories provide a framework for understanding how various factors such as foreign direct investment (FDI), manufacturing value addition, and education impact labor markets and societal structures.
Structural Transformation: According to the theory of structural transformation, as economies develop, labor shifts from agriculture to manufacturing and services. Indonesia's integration into global value chains (GVCs) has accelerated this process, particularly in the manufacturing sector. This shift creates new employment opportunities, potentially increasing the FLFPR as more women enter the workforce to fill these roles .
Human Capital Theory: This theory emphasizes the role of education and skill development in economic growth. Higher gender parity in school enrollment and increased female literacy rates contribute to a more skilled female labor force. This, in turn, enhances women's employability in the manufacturing sector, which demands more skilled labor due to technological advancements and integration into GVCs .
Grand Theory of Economic Development
Economic development theories provide a framework for understanding how various factors such as foreign direct investment (FDI), manufacturing value addition, and education impact labor markets and societal structures.
Structural Transformation: According to the theory of structural transformation, as economies develop, labor shifts from agriculture to manufacturing and services. Indonesia's integration into global value chains (GVCs) has accelerated this process, particularly in the manufacturing sector. This shift creates new employment opportunities, potentially increasing the FLFPR as more women enter the workforce to fill these roles .
Human Capital Theory: This theory emphasizes the role of education and skill development in economic growth. Higher gender parity in school enrollment and increased female literacy rates contribute to a more skilled female labor force. This, in turn, enhances women's employability in the manufacturing sector, which demands more skilled labor due to technological advancements and integration into GVCs .
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