Analysis of the potential economic sector in the southern of East Java Indonesia

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Hendry Cahyono, Waspodo Tjipto, Kukuh Arisetyawan

2016 International Journal of Economic Research Vol. 13 Issue 7 Article Cited by 0

Abstract

The purpose of this research is to: (a) identify and determine potential economic sectors based on contribution,specialization, competitive advantage, and growth criteria, and (b) to assess the pattern of potential economic sectors based on growth and contribution. To achieve these objectives, the development of regional sectors, each bearing different economic potential characteristics, is needed. The method of analysis used in this research is Location Quotient (LQ), Shift Share, MRP, and Overlay. The results indicate that, firstly, in terms of contribution, agriculture sector, mining and quarrying, financial, renting and business services, and the services sector are dominant basicsectors shared by all districts. Secondly, regarding competitive advantage and specialization, the agricultural sector, mining and quarrying, and the services sector take the lead. Furthermore, growth rate is dominated by agriculture, manufacturing, and services sector. Finally, based on contribution and growth rate criteria, the agricultural sector and the services sectorappear to excel. This research suggests that the government pro-actively implement applicable policy, and prioritize potential sectors for development in the southern region of East Java. © Serials Publications.

Affiliations

Faculty of Economic, Universitas Negeri Surabaya, Indonesia