Analysis of the Leading Sector in Underdeveloped Areas of West Sumatera, Indonesia

Alpon Satrianto (), Syamsul Amar () and Akmil Ikhsan ()

Journal of Social Economics Research, 2022, vol. 9, issue 3, 161-178

Abstract: Based on Presidential Regulation Number 63 of 2020, there is still one underdeveloped area in West Sumatera Province, namely the Kepulauan Mentawai Regency. This study aims to find and analyze the common leading sector in underdeveloped areas in West Sumatera Province. The criteria for the leading sectors in this study are placed in Quadrant I based on Klassen Typology, have a location quotient (LQ) value > 1, the sum of the proportional shift and differential shift is positive according to the shift-share method, the growth ratio of the reference area (GRRA) and the growth ratio of the study area (GRSA) are positive according to the growth ratio method (GRM), and the LQ and GRSA values are positive according to the overlay method. Based on the Klassen Typology method, two leading sectors were identified, the LQ method showed three leading sectors, the shift-share method identified 10 sectors, the GRM showed five leading sectors, and the overlay method identified four leading sectors. Construction was the leading sector that was found by all five methods. The regional government of the Kepulauan Mentawai Regency must commit to developing this sector in the future as a mainstay leading sector in the economic development of the region.

Keywords: Growth ratio method; Klassen typology; Leading sector; Location quotient; Overlay; Shift share. (search for similar items in EconPapers)
Date: 2022
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