Objective - This study aims to obtain empirical evidence regarding the ability of exports and gross domestic product (GDP) value-added in explaining the variation of employment opportunities in Indonesia. The method used in this study is explanatory research.

Methodology/Technique - This research uses panel data which is a combination of time series data for 8 (eight) years with the cross section of 33 provinces in Indonesia. Data were analyzed using structural equation regression through fixed effect technique and common effect technique.

Findings - The results show that using fixed effect technique, the export plays a positive and significant role in creating GDP value added and plays a negative role in creating employment opportunities, whereas the estimated GDP value-added plays a positive and significant role in shaping the employment opportunities in Indonesia. However, using common effect technique, the export plays a positive and significant role in shaping the GDP value added as well as both export.

Novelty - The study suggests that GDP value-added play a positive and significant role in shaping the employment opportunities in Indonesia.

Type of Paper: Empirical

Keywords: Common Effect Technique; Employment Opportunity; Export; Fixed Effect Technique; GDP Value Added.

JEL Classification: E24, F16.