Analysis of Regional Economic Resilience through Comparative Advantages of Sectoral Growth

Abstract

The objective of this study is to analyze the economic resilience of regions during the COVID-19 period that affected the Indonesian regional economy. Economic resilience can be identified by examining the development of leading sectors in the regional economy. This study uses secondary data in the form of time series using Gross Regional Domestic Product (GRDP) data obtained from the Central Bureau of Statistics of Batu City, the Central Bureau of Statistics of Malang City, and the Central Bureau of Statistics of Kediri City from 2018 to 2021. All three cities are located in East Java Province, Indonesia. The analysis in this study involves using three methods: Location Quotient, Shift Share, and Klassen typology. The analysis results reveal that Batu City and Malang City show strong competitiveness and comparative advantages. On the other hand, Kediri City demonstrates relatively low competitiveness and comparative advantage, which can be attributed to the impact of the COVID-19 shock. Additionally, research results show that the sectors in Malang City have experienced rapid growth, with all sectors developing faster than in other regions. In contrast, the sectors contributing to Batu and Kediri’s Gross Regional Domestic Product (GRDP) have experienced delayed development. The results of this study confirm that regional economic resilience still exists through the development of sectoral businesses that contribute to the overall value of Gross Regional Domestic Product in various regencies and cities within East Java Province. Keywords: basic sector, resilience, shift share, location quotient, regional economy