Abstract
Within the framework of regional economic development goals needed policy development based on regional characteristics (endogenous development), by exploiting the potential of local resources. Identification of potential economic sectors (base) is needed for the optimization process and the success of economic development, where the process of structural transformation is happening in it. The purpose of this study is to analyze the economic sectors which are the basis in each district/city in East Java province and to determine the structure of economic growth in the county/city both sectoral and aggregate the province of East Java. 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 service sector is a sector which is the basis in nearly 30 districts/cities in East Java Province. Growth in agriculture, processing industries, and the construction sector likely slowed otherwise all tertiary sectors which include: trade, hotels, and restaurants; transport and communication, finance, leasing, and services company, and the services sector is likely to experience growth positive. Trade, hotels and restaurants is a sector with the highest growth occurring in 33 districts/cities in East Java Province. Shift share analysis results showed that in the province of East Java 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. Keywords : LQ, MRP, and structural transformation
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