scholarly journals THE ANALYSIS OF ECONOMIC POTENTIAL IN NORTH SUMATERA PROVINCE

2019 ◽  
Vol 8 (2) ◽  
pp. 1
Author(s):  
Ahmad Habibi Harahap ◽  
Eko Wahyu Nugrahadi

Economic growth of North Sumatera Province is not quite on the top of optimum. If the compared by some of others province in Indonesia and by  all of his potention, the North Sumatera Province only on the 10th rank of economic growth in Indonesia in 2009-2013 period. The purpose of this study is toanalyze the economic sectors which are the basis in each district/city in North Sumatera province and to determine the structure of economic growth in the district /city both sectoral and aggregate the province of North Sumatera. Structural transformation to some extent will have an impact on overall economic growth. Analysis tools used in this study is Location Quetiont (LQ), Growth Ratio Model (MRP), overlay analysis, and shift share analysis. Results of this study showed that the agriculture sector is a sector which is the basis in nearly 13 districts/cities in North Sumatera Province. But the growth in agriculture, processing industries, mining and quarrying, and the electricity, gas & water supply sector likely slowed, otherwise all tertiary sectors which include: trade, hotels, and restaurants; transportation and communication, finance, leasing, and services company, and the services sector is likely to experience growth positive. Transportation and communication is a sector with the highest growth occurring in North Sumatera Province. Shift Share Analysis results showed that in the Province of North Sumatera is going structural transformation characterized by decreasing the role of the agricultural sector, and the increasing role of the service sector. This condition as well as contrary to the Kuznets theory which states that the process of structural transformation contribution marked by shifting agriculture to manufacturing and then to services sector.

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Ahmad Habibi Harahap

Economic growth of North Sumatera Province is not quite on the top of optimum. If the compared by some of others province in Indonesia and by  all of his potention, the North Sumatera Province only on the 10th rank of economic growth in Indonesia in 2009-2013 period. The purpose of this study is toanalyze the economic sectors which are the basis in each district/city in North Sumatera province and to determine the structure of economic growth in the district /city both sectoral and aggregate the province of North Sumatera. Structural transformation to some extent will have an impact on overall economic growth. Analysis tools used in this study is Location Quetiont (LQ), Growth Ratio Model (MRP), overlay analysis, and shift share analysis. Results of this study showed that the agriculture sector is a sector which is the basis in nearly 13 districts/cities in North Sumatera Province. But the growth in agriculture, processing industries, mining and quarrying, and the electricity, gas & water supply sector likely slowed, otherwise all tertiary sectors which include: trade, hotels, and restaurants; transportation and communication, finance, leasing, and services company, and the services sector is likely to experience growth positive. Transportation and communication is a sector with the highest growth occurring in North Sumatera Province. Shift Share Analysis results showed that in the Province of North Sumatera is going structural transformation characterized by decreasing the role of the agricultural sector, and the increasing role of the service sector. This condition as well as contrary to the Kuznets theory which states that the process of structural transformation contribution marked by shifting agriculture to manufacturing and then to services sector.


Media Trend ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. 275-282
Author(s):  
Abdul Khafidzin ◽  
Nurul Istifadah

Sectoral economic growth affects the level of poverty in the area. High economic growth does not merely reduce poverty. Equitable distribution of income is also a matter that needs to be considered in line with increased economic growth. High economic growth is the process of accumulation of sectoral economic growth that has undergone a structural shift in its journey. Changes in economic structure are marked by a decrease in the contribution of the agricultural sector and an increase in the contribution of the industrial sector, both in gross domestic product (GDP) and in employment. Economic growth needs to be directed towards economic sectors that are effective in reducing poverty and creating equitable distribution of income. The purpose of this study is to answer the question of how the influence of sectoral economic growth on poverty in East Java. For this purpose the panel data regression model is used. The selection of variables is based on research objectives. Agriculture sector GRDP (VP), industrial sector GRDP (VI) and service sector GRDP (VJ) represent sectoral economic growth. The results of the test show an increase in the contribution of the industrial sector effectively reduces poverty. In other words, between the agriculture, industry and services sectors, only the industrial sector has positive and significant parameters for poverty in East Java.


2019 ◽  
Vol 11 (5(J)) ◽  
pp. 54-68
Author(s):  
Adisu Abebaw Degu ◽  
Admassu Tesso Huluka

It is not uncommon that different government officials and practitioners infer the fallingagricultural share in GDP to the underpinning of structural transformation in an economy. By using variousstudies result and a time series of data spanning from 1981 up to 2017, this paper investigated, whetherthe declining share of agricultural output in GDP is indicating structural transformation or not in Ethiopianeconomy. The study showed that the service is the fastest-growing sector in Ethiopia, and it covers morethan 40% of GDP. The share of agriculture sector was 45% of GDP until 2011, while the industry sector hasbeen stagnating. Thus, it shows how the falling share of the agriculture sector in GDP is being supersededby the service sector. Empirical works also reveal that even though the share of the agricultural sector inGDP is falling, it is the primary source for the overall economic growth of Ethiopia. The share of the ruralpopulation has decreased from 89 percent in 1981 to 80% in the year 2017. So the vast population of thecountry is living in rural areas where agricultural-based activities are common. Lack of labor shift from theagricultural sector to the industrial sector can also be attributed to the insufficient expansion of themodern industrial sector to absorb the growing force labor. Furth more, the demographic transition alsoshowed a relative decline. Since structural transformation involves several interrelated processes, thedeclining share of agriculture output to GDP alone cannot explain the prevalence of structural change; theother processes like; industrialization, urbanization, and demographic transition need to be scrutinized


CONVERTER ◽  
2021 ◽  
pp. 674-688
Author(s):  
Cheng Hui Fang, Agbanyo George Kwame

Previous studies on the effect of FDI on sectoral growth are far from reaching a consensus. This paper, using a panel data of 35 countries between 1990-2019, aims at investigating the differential effects of foreign direct investment modes of entry into the economic sectors. Through the systems generalized method of moments methodology, this study found that the impact of foreign investment on growth corresponds directly with the absorptive capacity of the host country. Meanwhile,M&A is a better economic booster than greenfield investment. The results also suggest that foreign investment is a significant agent of economic growth in the service sector, relatively weak in the manufacturing sector and insignificant in the agriculture sector. Also, M&A seems to spillover more easily than greenfield across sectors, and natural resources are not very good channels to transmit foreign investment into economic growth.


Agro Ekonomi ◽  
2017 ◽  
Vol 15 (2) ◽  
Author(s):  
Ridwan Ridwan ◽  
Any Suryantini ◽  
Irham Irham

The objectives of this research are: (1) analyzing and classifying economic sectors into basic and non basic sector among districts in Central Sulawesi Province; (2) understanding characteristics of economic growth among its districts; (3) understanding the role of national and regional share among its districts. The analyses used are Location Quotient, Dynamic Location Quotient, Klassen typology, and mix and share analysis. LQ analysis result show that basic sector in Central Sulawesi are agricultural sector, electricity and water supply sector, construction sector, communication and transportation sector, and services sector. LQ analysis, at sub-district level generating agricultural sector is the basic sector for Banggai Kepulauan, Banggai, Morowali, Poso, Donggala, Tolitoli, Buol, and Parimo districts. Services sector is the basic sector for Palu, Donggala, and Tojo Una Una districts. The DLQ analysis indicating that agriculturalsector still expected as basic sector .in the future for some districts in Central Sulawesi Province. The Klassen typolgy analysis show that Morowali district is categorized as developed and fast growing region; Banggai Kepulauan, Banggai, Tolitoli, and Buol districts are categorized as growing regions; Parimo and Palu districts are categorized as growing but under-pressured; while Poso, Donggala, and Tojo Una Una districts are categorized as less developed The mix and share analysis shows that the regional share of 10 districts are more prominent determinant factor than national share.


2018 ◽  
Vol 1 (2) ◽  
pp. 116-123
Author(s):  
Mohammad Wasil ◽  
Mohammad Wahed

The purpose of this study is to analyze what economic sectors are potential to be used as development priorities and patterns of economic growth in the economy of Mojokerto Regency. The method used is: Location Quotient, Shift Share, and Williamson Index. From the analysis of the location quotient that falls into the category of the base sector are Agriculture, Clean Water & Water Sector, Building Sector, Transportation & Communication Sector, Financial Sector, Corporate Leasing & Services, and Services Sector. And the results of the shift share analysis show that the sectors with the fastest growth are the agricultural sector, mining & quarrying sector, manufacturing industry sector, and the trade sector, and the services sector. While the results from Williamson study show that the sub-districts that have the highest level of inequality are in Mojosari sub-district, Pungging subdistrict, and Kemlagi sub-district


2020 ◽  
Vol 18 (2) ◽  
pp. 168
Author(s):  
Abyan Rai ◽  
Fizza Anindhita

Bali is a province that has significant economic strength in various sectors. Bali has proximity to the West Nusa Tenggara and East Nusa Tenggara Provinces, and financial interaction can occur. This study analyzes the spillover effect of the Balinese economy on West Nusa Tenggara and East Nusa Tenggara. It looks at the West Nusa Tenggara and East Nusa Tenggara economies' response when the Bali economic sector experiences a shock. The method used is VECM using quarterly real GRDP data of 35 observations. This study found a positive relationship between the service sector and the Bali industry in West Nusa Tenggara's economic growth. The Balinese industrial sector also has a positive relationship with East Nusa Tenggara's economic growth. The spillover effect did not occur between the Bali industrial sector in general and the development of West Nusa Tenggara and the Bali service sector in general and East Nusa Tenggara's economic growth. The Balinese economy, which has a spillover effect on West Nusa Tenggara and East Nusa Tenggara's economic growth in several sectors, can be used as a reference for the government to make economic development policies.


2016 ◽  
Vol 7 (2) ◽  
pp. 1-14
Author(s):  
Rachida Khaled ◽  
Lamine Hammas

The diffusion of the technological innovation can affect the agricultural sector in the three-sided (social, economic and environmental), a hand, it can contribute to solve problems of the agricultural sector: the effects of the climatic changes, the farming exodus and the migration and the problems of poverty and it can improve the agricultural productivity. But on the other hand, he can lead to new problems, such as depletion of energy resources caused by excessive use of energizing technologies, pollution of air and water and the destruction of soil by industrial waste. This paper aims to theoretically and empirically analyze the role of technological innovation in improving agricultural sustainability through the impact of mechanization on agricultural productivity, energy production and net income per capita for a panel of three Maghreb countries (Algeria, Morocco and Tunisia) during the period 1997-2012. By using simultaneous equations, the authors' finding that technological innovation cannot achieve the purpose of sustainable development in the agriculture sector in the Maghreb countries through the negative impact of mechanization and research and development on agricultural productivity.


2021 ◽  
pp. 097491012110046
Author(s):  
Kunling Zhang

This article analyzes the structural transformation in 30 emerging market countries (E30) on the dimensions of industry, trade, and urbanization. It finds that first, in the agricultural sector, E30 have contributed greatly to the increase of the global agricultural productivity and the transfer of labor force from the agricultural sector to industry or the service sector. However, these countries still feature a high percentage of agricultural employment, which means there is vast room for shifting the agricultural labor force. Second, in the industrial sector, E30 have made remarkable contributions to the world’s industrial development but have also displayed a trend of premature “deindustrialization.” Third, the service sector has picked up speed and gradually turned into a new driver of economic development in E30. Against this backdrop, E30 face the major challenge of how to cope with the premature deindustrialization and smoothly shift the economic growth engine from the industrial sector to the service sector. Fourth, E30 have become an important force in the world trade, with their trade structure switching from simple, primary, low-value-added goods to sophisticated, high-grade, and high-value-added goods and services. However, some emerging market countries are more susceptible to the impacts of the anti-globalization trend because of their high reliance on foreign trade and improper trade structure. Therefore, how to diversify the economy and enhance its economic resilience holds the key to the sustainable economic development of E30. Fifth, E30 have contributed greatly to world urbanization. As urbanization relies more on the service sector than on the industrial sector, it is vital to properly strike a balance between industrialization and urbanization, and between industrialization and service sector development.


2019 ◽  
Vol 3 (1) ◽  
pp. 11-13
Author(s):  
Ribaz Chato Biro

Political stability and security have become important factors of sustainable economic progress for the developing countries, especially states with the experience of war and instability. Kurdistan Region of Iraq (KRI) as a semi-autonomous region tried to improve the level of political stability and security status, to gain more foreign direct investment (FDI) and economic growth. Consequently, KRI has become the safest region in Iraq and enjoyed political stability and safety. Therefore, during the last decade, KRI has occurred as a new destination of FDI in the Middle East and has received notable progress in most of the economic sectors. The aim of this study is to evaluate the role of political stability and security status on the FDI attractions and their consequences on economic development. However, it will investigate the factors that make the KRI safer than the rest of Iraq.


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