Determining Factors of Potential Economy Sectors of Bantaeng Regency in South Sulawesi Province of Indonesia: An Analysis Using the Location Quotient Approach

Willy Arafah,Ryan Corinus Dato Matheos

doi:10.5539/ijbm.v12n7p183

Willy Arafah, Ryan Corinus Dato Matheos

Open Access

https://doi.org/10.5539/ijbm.v12n7p183

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Abstract

Bantaeng Regency, one of the regencys in South Sulawesi Province, has some potential economy sectors to be developed. In order to know those potential economy sectors, one of the economy analysis which can be used is the Location Quotient analysis. In this research, the analysis will use Static Location Quotient (SLQ) and Dynamic Location Quotient (DLQ). The SLQ method is used to determine the base sectors (leading sectors) in Bantaeng Regency at one period of time. While DLQ method is used to determine whether a sector that is superior over a period of time are leading sectors for the period of time that will come. The analysis showed that in the year 2013-2014 the Trade and Retail sector; Car and Motorcycles Repair sector; Real Estate sector; Government Administration sector; Defence and Compulsory Social Security; and Other Services Sector is the leading economy sector in Bantaeng Regency. And in the year 2014-2015, the Trade and Retail sector; Cars and Motorcycles Repair sector; Real Estate sector; Service Sector Health and Social Work; and Other Services Sector is the leading economy sector in Bantaeng Regency.

Highlights

Bantaeng Regency, one of the regencys in South Sulawesi Province, has some potential economy sectors to be developed
This analysis was conducted to map out potential economy sectors in Bantaeng Regency, located in South Sulawesi Province
SLQij: the value that indicates the level of specialization in sector i in Bantaeng Regency; yij : the value-added production and business sector i in Bantaeng Regency expressed by the value of GDP

Summary

Preliminary

Accordance with the mandate of regional autonomy, each local government (the city and the regency government) was given by the central government some authority to explore its potential resources. The analysis of the sector which is the base/economic advantage in an area to be very important as a consideration in formulating development policies. It will be known which sector is the basic sector and its role in promoting economy growth in the region. Regional economy development policies which are set in an area must be adapted to the local conditions (problems, needs and potential) of the area. This analysis was conducted to map out potential economy sectors in Bantaeng Regency, located in South Sulawesi Province.

Methodology

The result and Discussion of the Static Location Quotient for the Year 2013

The Result and Discussion of the Static Location Quotient for the Year 2015

The Result and Discussion of the Dynamic Location Quotient

The Classification of the Potential Economy Sectors

Conclusion