Analysis Of Determination Of The Economic Sector Of The Economy Of Deli Serdang Regency With The GRDP -forming Sector Approach

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Introduction

Economic growth is a crucial factor in the sustainability of development in a region. As the population increases, so do the economic needs, requiring an increase in income every year. This can be achieved by increasing aggregate output (goods and services) or gross regional domestic product (GRDP). In development efforts, limited resources necessitate a focus on sectors that have a large multiplier effect on other sectors or the economy as a whole. This study aims to identify the leading sector in Deli Serdang Regency, utilizing secondary data in the form of Time Series PDRB Deli Serdang Regency and North Sumatra Province in the period 1995-2009.

Importance of Identifying the Leading Sector

Identifying the leading sector is essential in planning economic development in a region. It helps policymakers and stakeholders to focus on the sectors that have the potential to drive economic growth, create jobs, and improve the welfare of the community. By understanding the characteristics of the leading sector, local governments can develop strategies to support its growth, address challenges, and capitalize on opportunities.

Methodology

This study employed three analytical tools to identify the leading sector in Deli Serdang Regency:

  1. Klassen Typology: This analysis categorizes sectors into developed, growing, and declining sectors based on their growth rates and employment levels.
  2. Location Quotient (LQ): This analysis measures the relative importance of each sector in Deli Serdang Regency compared to the North Sumatra Province.
  3. Shift Share: This analysis identifies the sectors that are competitive, meaning they have advantages compared to similar sectors in other regions.

Results of the Analysis

The results of the Klassen Typology analysis show that the mining and excavation sector, the trade, hotel and restaurant sectors, and the service sector are developed and growing sectors. Analysis of Location Quotient (LQ) reveals that the manufacturing industry sector, trade, hotel and restaurant sectors, and the service sector are the base sector in Deli Serdang Regency. That is, these sectors make a significant contribution to the regional economy and have the potential to continue to grow.

The results of the shift share analysis show that the agricultural sector, mining and excavation sectors, electricity, gas and clean water sectors, building sectors, financial sectors, rental and company services, and service sectors are competitive sectors. That is, these sectors have advantages compared to similar sectors in other regions.

Conclusion

Based on the three analyzes conducted, the service sector was identified as the leading sector of Deli Serdang Regency. This sector meets the criteria as a developed and growing sector, the base sector, and is competitive.

Recommendations

The identification of this leading sector is very important in planning economic development in Deli Serdang Regency. Local governments need to focus on developing service sectors with appropriate strategies to increase economic growth, create jobs, and improve the welfare of the community. Here are some recommendations that can be considered:

Infrastructure Development

Increasing accessibility and connectivity in various regions in Deli Serdang Regency to support the development of the service sector.

Increasing Human Resources

Focusing training and education to improve the quality of workers in the service sector.

Promotion and Marketing

Promoting the potential of the Deli Serdang Regency Service Sector to investors and domestic and foreign tourists.

Policy Support

Providing conducive policy support for the growth of the service sector, such as the ease of licensing and financing access.

Conclusion

With a focus on developing the leading sector, Deli Serdang Regency has great potential to achieve sustainable economic growth and improve the welfare of the community. By understanding the characteristics of the leading sector and implementing targeted strategies, local governments can create a favorable business environment, attract investments, and drive economic development.

Limitations of the Study

This study has some limitations. The data used is secondary data, which may not be comprehensive or up-to-date. Additionally, the analysis is based on a specific time period, which may not reflect the current economic situation. Future studies can build on this research by using more recent data and exploring other analytical tools to identify the leading sector.

Future Research Directions

Future research can explore the following directions:

  1. In-depth analysis of the service sector: Conducting a more detailed analysis of the service sector, including its sub-sectors and their characteristics.
  2. Case studies of successful service sector development: Conducting case studies of regions or countries that have successfully developed their service sectors, to identify best practices and lessons learned.
  3. Policy evaluation: Evaluating the effectiveness of policies and programs aimed at supporting the growth of the service sector in Deli Serdang Regency.

By addressing these limitations and exploring new research directions, this study can contribute to a better understanding of the leading sector in Deli Serdang Regency and inform evidence-based policy decisions to support economic development in the region.

Q: What is the purpose of this study?

A: The purpose of this study is to identify the leading sector in Deli Serdang Regency, utilizing secondary data in the form of Time Series PDRB Deli Serdang Regency and North Sumatra Province in the period 1995-2009.

Q: What are the three analytical tools used in this study?

A: The three analytical tools used in this study are:

  1. Klassen Typology: This analysis categorizes sectors into developed, growing, and declining sectors based on their growth rates and employment levels.
  2. Location Quotient (LQ): This analysis measures the relative importance of each sector in Deli Serdang Regency compared to the North Sumatra Province.
  3. Shift Share: This analysis identifies the sectors that are competitive, meaning they have advantages compared to similar sectors in other regions.

Q: What are the results of the Klassen Typology analysis?

A: The results of the Klassen Typology analysis show that the mining and excavation sector, the trade, hotel and restaurant sectors, and the service sector are developed and growing sectors.

Q: What are the results of the Location Quotient (LQ) analysis?

A: The results of the Location Quotient (LQ) analysis reveal that the manufacturing industry sector, trade, hotel and restaurant sectors, and the service sector are the base sector in Deli Serdang Regency. That is, these sectors make a significant contribution to the regional economy and have the potential to continue to grow.

Q: What are the results of the Shift Share analysis?

A: The results of the Shift Share analysis show that the agricultural sector, mining and excavation sectors, electricity, gas and clean water sectors, building sectors, financial sectors, rental and company services, and service sectors are competitive sectors. That is, these sectors have advantages compared to similar sectors in other regions.

Q: What is the leading sector identified in this study?

A: The service sector was identified as the leading sector of Deli Serdang Regency. This sector meets the criteria as a developed and growing sector, the base sector, and is competitive.

Q: What are the recommendations for developing the leading sector?

A: The recommendations for developing the leading sector are:

  1. Infrastructure development: Increasing accessibility and connectivity in various regions in Deli Serdang Regency to support the development of the service sector.
  2. Increasing human resources: Focusing training and education to improve the quality of workers in the service sector.
  3. Promotion and marketing: Promoting the potential of the Deli Serdang Regency Service Sector to investors and domestic and foreign tourists.
  4. Policy support: Providing conducive policy support for the growth of the service sector, such as the ease of licensing and financing access.

Q: What are the limitations of this study?

A: The limitations of this study are:

  1. Secondary data: The data used is secondary data, which may not be comprehensive or up-to-date.
  2. Specific time period: The analysis is based on a specific time period, which may not reflect the current economic situation.

Q: What are the future research directions?

A: The future research directions are:

  1. In-depth analysis of the service sector: Conducting a more detailed analysis of the service sector, including its sub-sectors and their characteristics.
  2. Case studies of successful service sector development: Conducting case studies of regions or countries that have successfully developed their service sectors, to identify best practices and lessons learned.
  3. Policy evaluation: Evaluating the effectiveness of policies and programs aimed at supporting the growth of the service sector in Deli Serdang Regency.