Analyzing the Regional Leading Sectors with Location Quotient and Its Effect on Economic Growth in Aceh Jaya, Indonesia

Authors

  • Yayuk Eko Wahyuningsih Faculty of Economics, Universitas Teuku Umar, Indonesia
  • Leli Putri Ansari Faculty of Economics, Universitas Teuku Umar, Indonesia
  • Yasrizal Yasrizal Faculty of Economics, Universitas Teuku Umar, Indonesia
  • Sri Rosmiati Sani Faculty of Economics, Universitas Teuku Umar, Indonesia
  • T. Zulham Faculty of Economics, Universitas Teuku Umar, Indonesia
  • Jumadil Saputra Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia

DOI:

https://doi.org/10.56225/finbe.v1i1.83

Keywords:

location quotient, leading sector, sustainable development, new normal

Abstract

Unlike the North-East of Aceh region was previously an industrial zone and shifted to the service sector and agriculture. The central-southeast area remains in the plantation zone. Initially, the south-west region consisted of 2 regencies, namely the districts of West Aceh and South Aceh. Then in 2002, this region split into 4 districts namely Nagan Raya, Aceh Jaya, Simeulue and West Aceh districts. This study aims to analyze the potential of the regional superior sector in West Aceh Regency and its expansion area using Location Quotient analysis, or abbreviated as LQ, towards a sustainable economy in the new normal era. The data used is secondary data sourced from the central statistical agency of each district and province of Aceh. The gross regional domestic product data for the period 2010-2020 is 17 sectors. The results showed that the highest LQ value in Simeulue district was 2.18 for the government administration sector, then 1.51 for the agriculture, forestry and fishery sectors. For information, this district excels in lobster cultivation. Next is Nagan Raya district with an LQ of 2.88 in the mining/excavation sector and 1.52 in the agriculture/plantation sector. This value is obtained because this district excels in mining C and oil palm plantations. Then Aceh Jaya with an LQ of 1.81 in the construction sector and 1.55 in the transportation sector because this area is superior in terms of tourism. Finally, Aceh Barat district with an LQ value of 1.59 for the financial/information services sector. Meanwhile, in the agriculture/forestry sector it was 1.17 because this district excels in financial services and is the largest city on the south west coast of Aceh. The leading sectors above must still be managed properly, especially local potentials while still paying attention to a sustainable environmental economy. This is not an exaggeration considering that in this new normal era, the economy must continue to rise even during the COVID-19 pandemic while still adhering to health protocols.

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Published

2022-04-30

How to Cite

Wahyuningsih, Y. E., Ansari, L. P., Yasrizal, Y., Sani, S. R., Zulham, T., & Saputra, J. (2022). Analyzing the Regional Leading Sectors with Location Quotient and Its Effect on Economic Growth in Aceh Jaya, Indonesia. Frontiers in Business and Economics, 1(1), 35–42. https://doi.org/10.56225/finbe.v1i1.83

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