Analysis of factors affecting the growth of agriculture sector in North Sumatra

Abstract

Agriculture sector is one of the supporting economic sectors in North Sumatra Province. In 2018, the agricultural sector (food crops, plantation, forestry, livestock, and fisheries) was the sector that contributed the largest added value to the Gross Regional Domestic Product in North Sumatera Province, namely 21.4 percent, followed by the manufacturing sector at 20.29 percent. Therefore, it is necessary to conduct research the factors that influence the growth of the agriculture sectors in North Sumatera. The secondary data from the Central Statistics Agency of North Sumatra Province are used to obtain the data since 1985-2018. The analytical method used was multiple linear regressions. The results this paper that labour and agricultural imports had a positive and insignificant effect on the growth of agricultural sector. Meanwhile, land area, exports, and an investment have a positive and significant effect on the growth of agricultural sector.