Abstract
The success of sustainable economic development is seen to be enhanced by economic growth. Numerous studies have looked at the connection between economic growth and development, but the findings are still contradictory. The purpose of this research is to investigate the elements of agglomeration externalities that contribute to quality of economic growth. The agglomeration externalities namely specialization versus diversification. A mathematical quantitative approach was employed in this study using Marshallian and Jacobian Index while quality of growth measured by 6 dimensions. Quadrant method applied to analyze the relationship between the variables. The empirical evidence in Sumatera Islands showed that specialization policy has a higher positive impact to quality of economic growth than those from diversification policy. Thus, the implication in this study suggested that local government would be better off by focusing on certain sector rather than diversifying production.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Advanced Research in Economics and Finance
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
