The Role of Leading Sectors in Supporting the Economic Growth of East Java Province Before and During the Covid-19 Pandemic

Abstract

East Java is one of the driving forces of Indonesia's economy as it is the second-largest contributor to the Gross Regional Domestic Product (PDRB) after DKI Jakarta. However, in 2020, the economy of East Java experienced a contraction with a growth rate reaching -2.33 percent. This was primarily due to the impact of the Covid-19 pandemic, which led to negative growth in several sectors. In order to achieve the objectives and targets of regional development, especially in terms of economic growth in East Java Province, regional development can be structured according to inter-sectoral goals. Through descriptive analysis, the Location Quotient (LQ) approach, the Shift Share approach, and overlay using the Real Gross Domestic Product (PDRB Rill) based on constant prices in 2010, four leading sectors were identified. These sectors are the manufacturing industry, wholesale and retail trade, motor vehicle and motorcycle repair, accommodation, and food services, as well as information and communication. These four leading sectors play a crucial role in supporting economic growth in East Java due to their rapid growth rate, high contribution, and broad market share, both before and during the Covid-19 pandemic. Hence, the government needs to prioritize these leading sectors to support economic growth in East Java Province. Keywords: Covid-19, Economic Growth, Gross Domestic Regional Product, Overlay, Location Quotient, Shift Share