Abstract
ABSTRACTGerbangkertasusila (Gresik-Bangkalan-Mojokerto-Surabaya-Sidoarjo-Lamongan) is a center of economic growth in the province ofEast Java. Performance of competitiveness in the Gerbangkertasusila affect to the achievementof the indicators of competitiveness of East Javaprovince. Indicators of regional competitiveness include several aspects, namely: the regional economy, infrastructure, natural resources, human resources, technology, institutional, governmentpolicy, micro-economic management, and the regional financial system. Aspects of the regional economy can be measured by the optimization of the development of the leading sectors, whilethe indicator of the regional financial system is reflected by the ability of the financial system of banking and non-banking in the region in facilitating economic activities that can provide added value. The objectives of this study are to identify the leading sector of each kabupaten/ kota and also analyze the role of the financial system in improving regional competitiveness. Based on the indicators of the leading sector and the role of the financial system, prepared a strategy to improve regional competitiveness in each kabupaten/kota in Gerbangkertasusila. The tools of analysis in this study are shift-share and SWOT analysis.The results showed that the leading sector of city of Surabaya and Mojokerto are the trade sector. The district of Sidoarjo, Gresik, and Lamongan are the industrial sector, while the leading sector of Mojokerto district is the agriculture sector and Bangkalan district is the mining and agriculture sector. Furthermore, to improve the competitiveness of regions in Gerbangkertasusila need to increase the role of the financial system of banking and non-banking especially in building infrastructure at the leading sector.
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