Analysis of Determining the Leading Sector of the Dairi Regency Economy

Oct 13, 2025 by thesweetdesigns.com 114 views

Analysis of Determining the Leading Sector of the Dairi Regency Economy

Understanding the Importance of Regional Economic Growth

Regional economic growth is a crucial component in the regional development process, alongside aspects of equity and stability. Economic activities of a region cannot be realized well without significant economic growth. The fluctuations in economic growth, which are measured in the Gross Regional Domestic Product (GRDP), are grouped into 17 economic sectors. GRDP is calculated based on two methods, namely on the basis of applicable prices (ADHB), which uses the current year price, as well as on the basis of constant prices in 2010 (ADHK 2010), which refers to the 2010 price.

The Need for Focused Development

In the context of development with limited resources, it is essential to focus on sectors that have a significant multiplier effect on other sectors or the economy as a whole. Therefore, this study aims to identify the leading sector in the Dairi Regency economy, which will be taken into consideration in development planning. By identifying the leading sector, policymakers can make informed decisions to support its growth, ultimately contributing to overall regional economic growth and improving the welfare of the people of Dairi Regency.

Methodology

To achieve this goal, this study used secondary data in the form of time series data (time series) of Dairi Regency GRDP and North Sumatra Province for the 2010-2014 period. The analysis methods used include Klassen Typology analysis, Location Quotient (LQ) analysis, and shift share analysis. These methods provide a comprehensive understanding of the regional economy and help identify the leading sector.

Analysis Results

Klassen Typology Analysis

This analysis shows that the economic sector that is a mainstay in Dairi Regency is the administration of government, land, and mandatory social security. This shows that this sector has a strategic role in the regional economy and needs more attention in development planning. The Klassen Typology analysis provides a clear understanding of the sector's contribution to the regional economy and highlights its importance in development planning.

Analysis of Location Quotient (LQ)

The results of LQ analysis identified five sectors that were considered as the base sector (with LQ> 1), namely:

Government Administration Sector
Mandatory Land and Social Security Sector
Agriculture, Forestry and Fisheries Sector
The sector of providing accommodation and food
Construction sector
Water Procurement, Waste, Waste, and Recycling Sector

These sectors play an important role in regional economic growth and have the potential to be further developed. The LQ analysis provides a clear understanding of the sector's contribution to the regional economy and highlights its importance in development planning.

Shift Share Analysis

Through shift share analysis, six sectors have been found that have a positive competitiveness or good differential shift values, namely:

Government Administration Sector
Mandatory Land and Social Security Sector
Large and retail trade sectors
Car and Motorcycle Repair sector
The education sector
Electricity and Gas Procurement Sector
Industrial and Processing Sector
Company Services Sector

These sectors show good competition and are able to contribute significantly to regional economic growth. The shift share analysis provides a clear understanding of the sector's contribution to the regional economy and highlights its importance in development planning.

Conclusion

Based on the results of the analysis of the three methods, the sectors identified as the leading sector in Dairi Regency are the administrative sector of government, land, and mandatory social security. This sector meets the criteria as a mainstay sector, the base sector, and has a strong competitiveness. Therefore, the focus of development of this sector is very important to encourage overall regional economic growth, which in turn can improve the welfare of the people of Dairi Regency.

Recommendations for Development Planning

In development planning, stakeholders need to consider the sectors that have been identified, and make policies that support their growth in order to provide a broader positive impact on the regional economy. By focusing on the leading sector, policymakers can make informed decisions to support its growth, ultimately contributing to overall regional economic growth and improving the welfare of the people of Dairi Regency.

Future Research Directions

Future research can build on this study by exploring the following directions:

Conducting a more in-depth analysis of the leading sector to identify its strengths and weaknesses.
Examining the impact of policy interventions on the leading sector's growth.
Investigating the role of other sectors in supporting the growth of the leading sector.

By exploring these research directions, policymakers can gain a deeper understanding of the regional economy and make informed decisions to support the growth of the leading sector, ultimately contributing to overall regional economic growth and improving the welfare of the people of Dairi Regency.
Frequently Asked Questions (FAQs) on Determining the Leading Sector of the Dairi Regency Economy

Q: What is the significance of identifying the leading sector in the Dairi Regency economy?

A: Identifying the leading sector in the Dairi Regency economy is crucial for regional development planning. It helps policymakers understand the sector's contribution to the regional economy and make informed decisions to support its growth, ultimately contributing to overall regional economic growth and improving the welfare of the people of Dairi Regency.

Q: What are the three methods used in this study to identify the leading sector?

A: The three methods used in this study are:

Klassen Typology analysis
Location Quotient (LQ) analysis
Shift share analysis

Q: What is Klassen Typology analysis, and what does it reveal about the leading sector?

A: Klassen Typology analysis is a method used to identify the mainstay sector in the regional economy. It reveals that the administration of government, land, and mandatory social security sector is the mainstay sector in Dairi Regency, indicating its strategic role in the regional economy.

Q: What is Location Quotient (LQ) analysis, and what does it reveal about the leading sector?

A: Location Quotient (LQ) analysis is a method used to identify the base sector in the regional economy. It reveals that five sectors, including government administration, mandatory land and social security, agriculture, forestry and fisheries, providing accommodation and food, and construction, are the base sectors in Dairi Regency, indicating their importance in regional economic growth.

Q: What is shift share analysis, and what does it reveal about the leading sector?

A: Shift share analysis is a method used to identify the sector's contribution to regional economic growth. It reveals that six sectors, including government administration, mandatory land and social security, large and retail trade, car and motorcycle repair, education, and electricity and gas procurement, have a positive competitiveness and are able to contribute significantly to regional economic growth.

Q: What are the implications of identifying the leading sector for development planning?

A: Identifying the leading sector has significant implications for development planning. It helps policymakers make informed decisions to support the growth of the leading sector, ultimately contributing to overall regional economic growth and improving the welfare of the people of Dairi Regency.

Q: What are the future research directions for this study?

A: Future research directions for this study include:

Conducting a more in-depth analysis of the leading sector to identify its strengths and weaknesses.
Examining the impact of policy interventions on the leading sector's growth.
Investigating the role of other sectors in supporting the growth of the leading sector.

Q: How can policymakers use the findings of this study to support the growth of the leading sector?

A: Policymakers can use the findings of this study to support the growth of the leading sector by:

Providing targeted support to the leading sector through policy interventions.
Encouraging investment in the leading sector.
Developing human resources and infrastructure to support the growth of the leading sector.

Q: What are the benefits of identifying the leading sector for regional economic growth?

A: Identifying the leading sector has several benefits for regional economic growth, including:

Improved regional economic growth.
Increased investment in the leading sector.
Improved human resources and infrastructure to support the growth of the leading sector.

Q: How can the findings of this study be applied to other regions?

A: The findings of this study can be applied to other regions by:

Conducting similar studies to identify the leading sector in other regions.
Adapting the policy interventions and support measures to the specific needs of the region.
Encouraging investment in the leading sector.