Location Quotient and Shift Share Analysis for Sragen’s Economic Potential

Naufal Azaki

doi:10.26905/j-tragos.v2i1.11215

Location Quotient and Shift Share Analysis for Sragen’s Economic Potential

Naufal Azaki

Abstract

This study employs the basic economic theory approach to evaluate the performance of regional economic development in Sragen Regency, Central Java Province. The primary objective is to identify the base/leading and prospective economic sectors that could bolster regional productivity. The study utilizes a quantitative approach, employing the Location Quotient and Shift Share methods. The data used for this analysis is the secondary data of the Gross Regional Domestic Product (GRDP) of Sragen Regency and Central Java Province from 2015 to 2019. The research findings reveal six sectors as the base/leading and prospective sectors. These include Agriculture, Forestry and Fisheries, Electricity and Gas Procurement, Wholesale and Retail Trade, Car and Motorcycle Repair, Corporate Services, and Other Services. These sectors are considered pivotal in driving the region’s economic growth. In addition to these, ten other sectors, while not being the base, show prospective development. These sectors present potential opportunities for further economic expansion. However, the Mining and Quarrying sector falls into the category of non-basis and is not considered a prospective sector. The Shift Share Analysis results indicate that the Manufacturing Industry outperforms other sectors in terms of competitiveness in the Sragen Regency. This suggests that the Manufacturing Industry holds a significant position in the region’s economic landscape. In conclusion, the study provides valuable insights into the economic sectors that are instrumental in strengthening regional productivity in Sragen Regency. It also highlights the sectors with potential for future development, thereby guiding strategic planning for regional economic growth.

Keywords

Analysis; Base regional economics potential; Location Quotient; Regional Economics Development; Shift Share

Full Text:

PDF

References

Adisasmita, Raharjo. (2008). Regional development: concepts and theories. Yogyakarta: Graha Ilmu.

Alhowaish, A. K., Alsharikh, M., Alasmail, M., & Alghamdi, Z. (2015). Location Quotient Technique and Economy Analysis of Regions: Tabuk Province of Saudi Arabia as a Case Study. International Journal of Science and Research (IJSR), 4(12), 1756-1761.

Arrazy, M. (2020). Analisa Location Quotient (LQ) Sektor Akomodasi dan Penyediaan Makan Minum di Kabupaten/Kota Sumatera Barat. Jurnal Dinamika Ekonomi Pembangunan (JDEP), 3(2), 368-375.

Alam., et al. (2022). A Sharia Economic Collaboration Model And Its Positive Impact On Developing Of Poor Villages: A Study In Indonesia. Public And Municipal Finance, 11(1), 101-112. https://doi.org/10.21511/pmf.11(1).2022.09

Badan Pusat Statistik (BPS). (2020). Kabupaten Sragen Dalam Angka Tahun 2020. Badan Pusat Statistik (BPS).

Badan Pusat Statistik (BPS). (2021). Kabupaten Sragen Dalam Angka Tahun 2021. Badan Pusat Statistik (BPS).

Badan Pusat Statistik (BPS). (2020). Provinsi Jawa Tengah Dalam Angka Tahun 2020. Badan Pusat Statistik (BPS).

Berawi, M. A., Zagloel, T. Y., Perdana, M., & Mulyanto, H. (2017). Producing Alternative Concept for the Trans-Sumatera Toll Road Project Development Using Location Quotient Method. Procedia Engineering, 171, 265-273.

Boguslavskay. (2020). Structure Of Production And Economic Potential Of The Region. Economics Finance And Management Review, (2), 16-22. https://doi.org/10.36690/2674-5208-2020-2-16

Diansari, P., Yunus, S. R., Arsyad, M., Lanuhu, N., Jamil, M. H., & Mahyuddin. (2021). Analysis of Agriculture-Based Commodities in Bolaang Mongondow Regency, North Sulawesi, Indonesia. The 1st International Conference on Environmental Ecology of Food Security. IOP Conf. Series: Earth and Environmental Sciences.

Ekowati, T., Prastyo, E., & Mukson. (2020). The Potential Commodities as a Support of Farm Sustainability and Supply Stability in Grobogan Regency. The 5th International Seminar on Agribusiness 2019. IOP Conf. Series: Earth and Environmental Science.

Golovikhin, Sergei. (2021). Competitive potential and socio-economic development of the region.. https://doi.org/10.15405/epsbs.2021.04.28

Hariyoko, Y., & Puspaningtyas, A. (2020). Analisis Pengembangan Sektor Unggulan Kota Surabaya 2013-2018. Jurnal Ilmu Administrasi Publik, 5(2), 110-116.

Hermanto. (2000). Analisis Spesialisasi Regional Propinsi Kalimantan Tengah. Jurnal Ekonomi dan Studi Pembangunan (JESP), 1(1), 45-71.

Hood, Ron. (1998). Economic Analysis: A Location Quotient. Primer. Principal Sun Region Associates, Inc.

He, dan et al., (2020). Can Industrial Diversification Help Strengthen Regional Economic Resilience?. Frontiers In Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.987396

Head, Keith & Mayer, Thierry. (2010). Gravity, Market Potential And Economic Development. Journal Of Economic Geography, 11(2), 281-294. https://doi.org/10.1093/jeg/lbq037

Isabhandia, Y. M., & Setiartiti, L. (2021, February). Basic Sector Analysis and Development Strategy of Regional Economic Potential in Kulon Progo District 2013-2017. Journal of Economics Research and Social Sciences, 5(1), 77-87.

Isserman, A. M. (1977). The Location Quotient Approach to Estimating Regional Economic Impacts. Journal of the American Institute of Planners, 43(1), 33-41

Lu et al., (2022). Research On The Impact Of Technological Finance On Financial Stability: Based On The Perspective Of High-Quality Economic Growth. Complexity, 2022, 1-15. https://doi.org/10.1155/2022/2552520

Manullang, D., Rusgiyono, A., & Warsito, B. (2019). Analysis of Aquaculture Leading Commodities in Central Java Using Location Quotient and Shift Share Methods. ISNPINSA 2018. IOP Conf. Series: Journal of Physics.

Maulana, I. N. H., & Wardah, T. F. (2023). Fostering Community Resilience Through Social Capital. Journal of Transformative Governance and Social Justice, 1(1), 1-10. https://doi.org/10.26905/j-tragos.v1i1.9229

Miller, Mark M., Gibson, Lay James, & Wright, N Gene. (1991). Location Quotient: A Basic Tool for Economic Development Analysis. Economic Development Review; Park Ridge. Vol. 9, Iss. 2. Page. 65.

Morrissey, K. (2014). A Location Quotient Approach To Producing Regional Production Multipliers For The Irish Economy. Papers In Regional Science.

Mickiewicz, Bartosz. 2022. Analysis Development And Assessment Of The Total Economic Potential Of Companies. Vuzf Review, 7(3), 57-66. https://doi.org/10.38188/2534-9228.22.3.06

Nurhayati, S. F. (2013). Identifikasi Sektor Unggulan Kabupaten Lamongan: Tahun 2006-2010. Telaah Bisnis, 14(1), 27-52

Pemerintah Kabupaten Sragen. (2020). Rencana Pembangunan Jangka Menengah Daerah (RPJMD) Kabupaten Sragen Tahun 2021-2026. Pemerintah Kabupaten Sragen.

Priana, W. (2016). Economic Growth Model Location Quotient (LQ) in East Java Province. Jurnal Ilmu Ekonomi dan Pembangunan (JIEP), 16(1), 29-37.

Puspitaningrum, N., & Sudrajat. (2021). Economic Development of South Coastal Region Purworejo Regency Based on Superior Commodities. The International Conference on Smart and Innovative Agriculture. IOP Conf. Series: Earth and Environmental Science.

Putri et al., (2022). Potential Analysis Of Leading Economic Sector In Economic Development In Nganjuk Regency. Marginal Journal Of Management Accounting General Finance And International Economic Issues, 2(1), 29-39. https://doi.org/10.55047/marginal.v2i1.350

Raqib, M., & Rofiuddin, M. (2018). Determination of Leading Sector Sukohargo Regency: Location Quotient and Shift Share Esteban Marquillas Approach. 2(2).

Rochmatulla et al., (2020). Economic Growth In Indonesian New Autonomous: Social-Economic Perspective. Jejak, 13(1), 170-187. https://doi.org/10.15294/jejak.v13i1.22816

Saragih, J. R. (2018). Perencanaan Wilayah dan Pengembangan Ekonomi Lokal Berbasis Pertanian: Teori dan Aplikasi. Yogyakarta: Pustaka Pelajar.

Sihaloho, H., Saragi, C. P., & Simbolon, R. (2018). Analysis of Economic Growth Trends in Various Sector in Toba Samosir District. International Conference on Agribusiness, Food, and Agro-Technology. IOP Conf. Series: Earth and Environmental Science.

Sjafrizal. (2008). Regional Economics (Theory and Application). Padang: Pranita Offset.

Stimson, R. J., Stough, R. R., & Roberts, B. H. (2006). Regional Economic Development: Analysis and Planning Strategy. Springer.

Tavassoli, Sam & Carbonara, Nunzia. 2014. The Role Of Knowledge Variety And Intensity For Regional Innovation. Small Business Economics, 43(2), 493-509. https://doi.org/10.1007/s11187-014-9547-7

Wei et al., (2020). The Coordinated Relationship Between Investment Potential And Economic Development And Its Driving Mechanism: A Case Study Of The African Region. Sustainability, 12(1), 442. https://doi.org/10.3390/su12010442

Лубсaнова, (2021). Regions of The Zone of Influence of The Great Silk Road and The Tea Road: Strategic Directions for The Development of Economic Potential. Review of Applied Socio-Economic Research, 22(2), 102-112. https://doi.org/10.54609/reaser.v22i2.106

DOI: https://doi.org/10.26905/j-tragos.v2i1.11215