Sectoral Competitiveness and Regional Development Policy Priorities: Based on Location Quotient and Shift-Share Analysis
DOI:
https://doi.org/10.26905/pjiap.v11i2.16846Keywords:
LQSS, Policy priorities, Regional development, Sectoral competivenessAbstract
This study aims to identify competitive sectors and regional development policy priorities in Lamongan Regency to promote more inclusive and sustainable growth. The success of the development of regional leading sectors depends not only on the availability of natural resources, but also on the right policy interventions to strengthen sectoral competitiveness. Identification of sectors with comparative and competitive advantages is essential to determine development priorities and allocate regional resources effectively. Lamongan experienced an economic recovery during 2020–2024 (growth rising from −2.65% in 2020 to 4.81% in 2024); however, its contribution to East Java’s GRDP remained relatively small and slightly declined (from 1.70% to 1.64%), while poverty indicators reveal quality-related challenges: the poverty rate decreased (from 12.42% to 12.16%) but the poverty gap index (P1) and poverty severity index (P2) increased. The study employs a descriptive quantitative approach using Location Quotient and Shift share analysis based on 2020–2024 current-price GRDP (ADHB) data. The Location Quotient results indicate agriculture as Lamongan’s main base sector, supported by several service and enabling sectors. In contrast, the Shift share results show that wholesale and retail trade and manufacturing are the primary drivers of growth, with manufacturing exhibiting strong local competitiveness despite not yet being a base sector. Accordingly, policy priorities should focus on strengthening trade and construction in the short term, scaling up manufacturing in the medium term, and transforming agriculture while reinforcing enabling sectors in the sustainable growth.
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