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Applying Location Quotient and Shift-Share Analysis in Determining Leading Sectors in Teluk Bintuni Regency Marcus Maspaitella; Sisilia M. Parinussa
JDE (Journal of Developing Economies) Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.22182

Abstract

Economic growth is an important aspect that reflects the success of a country or region’s economic development. The changes of its driving sectors mainly influence the changes in economic growth. This study aims to identify the leading economic sectors and analyze the sectoral shifts of the Teluk Bintuni regency’s economy. The data used in this study is the Gross Regional Domestic Product of both Teluk Bintuni Regency and Papua Barat province in the period from 2010 to 2018. In determining the leading sectors and analyzing the sector using Location Quotient and Shift-Share analysis. The results suggested that the manufacturing and mining, and quarrying sectors were the base sectors of Teluk Bintuni’s economy. However, the result of Shift-Share analysis highlighted construction, education services, procurement of electricity and gas, and public administration, defense, and compulsory social security as competitive and progressive sectors during the same period. Policy implications of this study include evaluating and reformulating development strategies and programs and considering sectoral interconnection for further development planning. Keywords: Location Quotient, Shift-Share, Leading Sectors, Teluk Bintuni JEL: O11; R11; R58
The impact of electricity investment on inter-regional economic development in Indonesia: An Inter-Regional Input-Output (IRIO) approach Albertus Girik Allo; Inayati Nuraini Dwiputri; Marcus Maspaitella
JOURNAL OF SOCIOECONOMICS AND DEVELOPMENT Vol 5, No 1 (2022): April
Publisher : Publisher of Widyagama University of Malang (UWG Press)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31328/jsed.v5i1.2775

Abstract

Electricity is a development priority for low and middle income countries, including Indonesia, especially in the households living in suburban and rural areas. By 2020, Indonesia's electrification ratio has reached 96.71%. However, there were 433 villages that did not have electricity, most of which were located in eastern Indonesia (Papua, West Papua, East Nusa Tenggara, and Maluku). Investment in the electricity sector will drive regional economic growth. This research attempts to figure out the impact of investment in electricity on economy. This study used Indonesian inter-regional Input-Output data. The method used in this study was the Interregional Input-Output (IRIO) model. The analysis shows that electricity impacted not only the territory being built but also other regions in Indonesia. Electricity industry investment in Indonesia have been able to provide a multiplier effect on the economy as many as 3.11. Java region gets the greatest benefit from electricity development in Indonesia. This was rationally acceptable due to the fact that most of the industry was located in this region. This causes a development gap between Java and outside Java. It is necessary to accelerate reallocate several national strategic industries on various islands in Indonesia based on the advantages of each region and to strive for areas that are still "dark" to have electricity.JEL Classification E22; L94; R15