The Role of Clove Plantations in West Seram’s Economy and Employment

Abstract

This study examines the effects of clove plantation area and production on gross regional domestic product (GRDP) and employment absorption in West Seram Regency, Indonesia. Annual secondary time-series data for 2003-2017 were obtained from Statistics Indonesia and include plantation area, production, GRDP at 2010 constant prices, and employment. Two multiple linear regression models were estimated using ordinary least squares. In the GRDP model, plantation area is statistically insignificant, while production has a positive and significant coefficient. The variables are jointly significant and the model yields R² = 0.925375. In the employment model, plantation area remains insignificant, whereas production is positive and significant; the model yields R² = 0.516268 and a significant F-test. The findings indicate that production growth is more consistently associated with regional output and employment than land expansion. However, possible positive serial correlation in the employment model warrants cautious interpretation and further robustness testing