Location Quotient Research Articles

Pemilihan Pusat Pertumbuhan Baru pada Daerah Mitra Ibu Kota Nusantara: Studi Kasus Kecamatan Penajam

The relocation of Indonesia’s Capital City of Nusantara (IKN) represents the government’s strategy to reduce regional disparities in the country. Penajam Subdistrict, which directly borders IKN area and serves as one of its partner areas, has significant potential as an economic driver, particularly for food security. Its geographical location gives it agricultural advantages, especially in the plantation subsector, which supports the national agricultural activities as directed by Presidential Regulation No. 63 of 2022. This potential may encourage the establishment of new growth centers that drive the economic sector through their leading plantation commodities. The development of these centers may also generate optimal polarization and downward trickling effects that benefit IKN partner areas. This study aims to identify new growth centers at a micro level in Penajam Subdistrict to support spatial utilization that aligns with IKN needs and sustainable regional development. Employing a quantitative method, this research utilizes centrality and accessibility index analysis as well as Location Quotient (LQ) techniques. The results of the study show that eight villages in Penajam have the potential to become new growth centers and serve as partner areas to IKN.

Can digitalization improve the equality and equity of food environment? Evidence from greengrocers in central Shanghai.

Online food shopping has a profound impact on people's food acquisition behavior, the current study aims to understand how online food shopping may affect the accessibility of the local food environment and further influence the health equity among different populations. Taking 8512 traditional and online greengrocers in central Shanghai as an example, this paper uses Gini coefficient, location quotient and spatial clustering method to compare the equality and equity of food environment between physical and digital food outlets. It finds that spatial equality is more significantly improved as a result of online food stores than are population equality and social equity of the food environment; older populations are not disadvantaged in terms of healthy food access but lower-income people are; the impact of online stores varies for different regions and different types of stores; depot-based stores have the most positive impact on health equity. Policy implications are discussed to promote the environmental justice of healthy food accessibility.

The Influence of Leading Sectors, Domestic Investment and Population on Regional Original Income (PAD) in Bengkulu Province

This research aims to analyze the influence of leading sectors, domestic investment, and population on Regional Original Income (PAD) in Bengkulu Province. Regional economic development is measured through Gross Regional Domestic Product (GRDP), which reflects resource management capabilities and fiscal independence. The data used in this research is secondary data covering the 2019-2023 periode and analyzed using the Location Quotient (LQ) technique and multiple regression methods. The research results show that leading sectors and domestic investment have a significant influence on PAD, while the influence of population varies depending on the sector studied. These findings emphasize the importance of optimizing potential economic sectors and increasing domestic investment to strengthen fiscal independence and regional competitiveness in Bengkulu Province.

Regional Workforce Dynamics in West Virginia: Insights from Shift-Share and Location Quotient Analysis

West Virginia, home to approximately 1.77 million residents, has been grappling with significant economic challenges characterized by persistent poverty and sluggish growth. Despite ongoing development efforts, the state’s Gross State Product (GSP) has seen only a modest increase of 0.1% over the past five years, reaching USD 71.7 billion, while the unemployment rate remains at 4.0%. The annualized employment growth rate of 0.7% lags behind the national average, and only about 54% of West Virginia’s adult population is either employed or actively seeking employment, resulting in one of the lowest labor force participation rates in the nation. In contrast, certain industrial sectors, such as healthcare, social assistance, retail trade, and accommodation and food services, have shown intermittent growth at the county and regional levels. To explore the unique characteristics and significance of these regions in relation to employment growth, this study examines regional employment patterns in West Virginia from 2001 to 2020, focusing on the main regions of the state: Metro Valley, Mid-Ohio Valley, New River/Greenbrier Valley, Mountain Lakes, and Potomac Highlands. Utilizing shift-share and location quotient (LQ) analyses, this research identifies the sectors driving regional employment and assesses their performance. Key findings reveal strong sectoral performance in mining, manufacturing, and finance in the Mid-Ohio Valley; wholesale trade, transportation, and utilities in the Metro Valley; agriculture and administrative services in the New River/Greenbrier Valley; agriculture and manufacturing in the Potomac Highlands; and scientific services, healthcare, and utilities in the Mountain Lakes region. Based on these insights, this study recommends targeted policy interventions to address regional disparities, enhance sectors with significant short- and long-term benefits, and foster balanced economic development across the state.

Analysis of Leading Commodities of Plantation Sub-Sectors in Tanah Laut District, South Kalimantan Province

Leading commodities are crucial for understanding the potential of commodities in both national and international markets. Exceptional products can serve as distinct catalysts for regional growth. This study aims to investigate potential alternative plantation commodities, assess the development of production growth rates, analyze regional market share growth, proportional growth of net commodity growth in the plantation sub-sector, and identify the position of plantation sub-sector commodities in Tanah Laut District. Time series data from 2013 to 2021 were utilized, employing Shift Share Analysis, Location Quotient (LQ) Analysis, Dynamic Location Quotient (DLQ) Analysis, and Klassen Typology. The analysis revealed that although palm oil and cloves are basic commodities, they are experiencing a decline in perspective, whereas rubber, coconut, sugar palm, coffee, and pepper are prospective commodities for future development. Shift Share Analysis concluded that the regional market share growth of palm oil has good competitiveness and a positive Proportional Growth value, with coffee and sugar palm exhibiting rapid growth. Klassen Typology Analysis indicated that coconut, coffee, pepper, and sugar palm fall within the category of advanced but pressured sectors, while palm oil is categorized as a potential sector.

Analysis of The Leading Sector for Regional Development: A Case Study of Batam, Bintan, and Karimun (BBK), Riau Islands Province, Indonesia

Abstract: Spatial planning in Batam, Bintan, and Karimun (BBK) areas is prioritized because it has an important impact on the national economy. This research aims to identify the potential leading sectors in the BBK areas as a reference in regional development. This study uses time series data on Gross Regional Domestic Product (GRDP) based on constant prices in the BBK areas from 2011 to 2021. The analytical tools used in this research are Location Quotient to identify basic and non-basic sectors, Shift Share Analysis to determine changes and shifts in sectors, and Klassen Typology to determine the classification of sector in each region. The three analytical tools combined results demonstrate that economic growth in Batam is supported by the processing sector. A growing sector in Bintan is related to the tourism. Economic potential in Karimun dominated by the agricultural, forestry, and marine sectors. Tanjungpinang’s economic potential is dominated by the service sector, which supports the city’s role as the capital of the Riau Islands Province. However, the fisheries sector has not developed optimally. As an archipelago, regional development policies in the BBK areas should develop other sectors to optimize the maritime economic potential. Keywords: Klassen Typology, Location Quotient, Leading Sectors, National Strategic Areas, Shift Share Analysis

Demographic Change and Regional Specialisation: The Case of Greek NUTS II Regions

This paper investigates the impact of demographic changes on regional specialisation across Greek NUTS2 regions from 2001 to 2021. It explores the relationship between age-specific variations in the economically active population and gross value added (GVA) across different economic sectors. Using demographic and GVA data alongside spatial analysis techniques such as spatial regression models, median Local Moran’s I, and location quotient, the study identifies spatial autocorrelation patterns. Findings reveal strong correlations between the economically active population and GVA, highlighting demographic factors’ crucial role in regional economic performance. Over the period 2001 to 2021, the 15–24 and 25–34 age groups generally experienced declining growth rates in total, male, and female economically active populations, while the 45–54 and 55–64 age groups saw increases. Regions adjacent to those with higher economically active populations showed high–high clustering. Especially, Attiki and Kentriki Makedonia, the two metropolitan regions of Greece, influence neighbouring regions through economic spillover effects, fostering economic sector clustering and emphasising regional specialisation. These findings highlight the complex interplay between demographic shifts and regional economic outcomes, noting spatial disparities and the need for targeted policy interventions. The study provides empirical evidence demonstrating how demographic changes influence regional economic development across different regions.

Digitally accessible space: Discovery of the distinctive locational characteristics of restaurants with online reservation

The widespread adoption of ICT including mobile apps and their online services has significantly reshaped human activities in urban spaces. The complex interaction between ICT on urban space presents challenges in understanding their relationships. This study aims to discover the empirical evidence of the spatial variance of urban space linked to ICT. To pursue this objective, this study defines spaces that leverage ICT-based activities as Digitally Accessible Spaces (DAS), and choose restaurants that provide online reservation services through NAVER, which is the most dominant search engine in South Korea. Based on fundamental measurements in location theory, we stratified the entire area in Seoul into four groups in order of profitability. Using the location quotient (LQ), we quantified the locational characteristics of DAS compared to overall restaurants. Consequently, three measurements, which are density of marketplace, distance from public transit, and proper land use, indicate that the second-tier profitable areas commonly possess the largest portion of DAS. These characteristics provided empirical evidence supporting previous studies highlighting the liberation effect and altered travel behavior resulting from ICT-based activity through qualitative and theoretical approaches. We expect that this study can contribute to further research related to the interaction between digital space and physical space.

Economic Sector Study and Development Strategy for the Rebana Metropolitan Area

This research analyzed potential sectors and development strategies in each city/regency in the Rebana Metropolitan Area, from 2018 to 2022. The research method used was quantitative descriptive using several analytical methods, namely Location Quotient, Shift Share, Labor Productivity Levels per Sector, and Klassen Typology. The research results show that each district/city in the Rebana Metropolitan Area has different economic characteristics, apart from that priority infrastructure projects and industrialization which are the direction of development of the Rebana Metropolitan Area have not had a significant impact on the progress of cities/regencies in the Rebana Metropolitan Area.

Potensi dan Peluang Akomodasi Alternatif Glamour Camping (Glamping) di Kawasan Destinasi Pariwisata Sembalun Kabupaten Lombok Timur

The aim of the research carried out was to determine the potential and opportunities for the availability of alternative Glamping accommodation in the Sembalun tourism destination area, East Lombok district, as well as to determine the calculation of Location Quotient (LQ), Specialization Index, Shift Share and Net Shift (PB) in analyzing the potential and opportunities for provision. alternative accommodation. The research methodology used in this research is a type of descriptive quantitative research based on the calculation of the Specialization Index, Location Quotient (LQ), and Shift Share. With a rational-comprehensive approach. Types and sources of data in this research, primary and secondary data, with data collection techniques in literature and direct observation or observations. The results of this research show that the specialization index calculation for 17 (seventeen) sectors based on current prices obtained values ​​of 0.31; 0.30 and 0.26. Meanwhile, based on constant prices, the IS value obtained for 3 (three) years was 0 .62; 0.54; 0.46, the value of the specialization index is close to one. For the combined calculation of LQ and Net Shift, it is known that the accommodation, food and drink provision sector have a value of LQ > 1, and PB > 1, which means that the agricultural sector in a broad sense is based on current and constant prices. for 3 years has a stable LQ value which means the potential and opportunities to build and develop accommodation in tourism destinations, are still quite large.

Geographic Analysis of Distribution and Development of Goat Farms

This study investigates the distribution and development of goat farms in Limapuluh Kota District with two main objectives: (a) to map the spatial distribution and development areas of goat farms, and (b) to enhance the capacity of the goat population within the district. Spatial analysis was conducted using ArcGIS 10.9, Location Quotient, and Shift Share Analysis to identify key areas for goat farm distribution and development. The capacity of livestock populations was evaluated through the CIRP method using Microsoft Excel, based on potential land resources. Secondary data from 2017 to 2021 on goat farm production was sourced from the Livestock and Animal Health Service Office and BPS Limapuluh Kota. Results indicated that goat farms are primarily concentrated in the Harau, Suliki, and Bukit Barisan Districts, while the Mungka, Payakumbuh, Guguak, Lareh Sago Halaban, and Kapur Sembilan Districts are identified as development areas. The Situjuh Limo Nagari, Luak, Akabiluru, and Pangkalan Koto Baru Districts are classified as consolidation areas, and the Gunuang Omeh District serves as a supporting area. The analysis highlights that 13 districts have potential for boosting the goat population, whereas Situjuh Limo Nagari and Guguak are categorized in the low group due to their goat population being below the threshold of 200 LU.

Methodological proposal to approximate the sectoral impacts of a carbon tax at the regional level – the case of Chile

This study proposes a methodological approach to approximate the sectoral impacts of carbon taxes in the different regions of Chile through the environmental extension of intraregional input – output models. These models are calibrated by regionalizing technical coefficients using an indirect method called Industry-Specific Flegg Location Quotient. Carbon dioxide emissions at the regional and sectoral levels are obtained mainly from regional inventories of greenhouse gases, although in some sectors, they are calculated indirectly from fuel consumption. Then, tax scenarios are proposed that allow simulation of the effects on sectoral prices, levels of production, and emissions at the regional level. The results show that implementing an identical tax rate at the national level has a very heterogeneous impact on the country’s regions, with the regions of Atacama, Antofagasta, Valparaíso, and Biobío being the most affected economies in relative terms since most of the large thermoelectric power plants are located there.

Analysis of Leading Sectors Supporting Agriculture through the LQ and Shift Share Approaches in Sumatera

This study analyzes the economic impact of agriculture on Sumatra's regional growth from 2018 to 2022, employing quantitative descriptive methods and data from the Provincial Central Statistics Agency (BPS). By utilizing Location Quotient (LQ), Dynamic Location Quotient (DLQ), and Shift Share (SS) analyses, the research identifies key agricultural sectors contributing to economic development. Results reveal that plantation crops, forestry, fisheries, and agricultural services are significant contributors, with Riau Province showing the highest relative contribution. Cluster analysis categorizes sectors into four groups, with plantation crops and agricultural services in the second cluster. Sumatera Utara and Riau demonstrate stable economic growth. The study suggests enhancing productivity, expanding export markets, and improving infrastructure and innovation for less significant sectors. Future research should explore non-basis sectors and successful case studies to provide deeper insights into sectoral performance and economic impact.

Uncovering Key Economic Drivers in MSMEs through Economic Base Model

The importance of leading sectors can contribute to the development of the national economy. The economic advantages of a region serve as a mobilized tool for economic growth and are crucial in creating new business opportunities that can absorb labor. The objective of this research is to determine the leading sector for micro small and medium enterprises as well as the effects of the multiplier effect in Surakarta City in 2022. The method used Location Quotient, Base Employment, and Base Multiplier as a combination of the Economic Base Model. The findings of this study indicate that in the city of Surakarta, there are three leading sectors, namely the service sector, trade, and non-agricultural production. The highest base multiplier and base employment are in the trade sector. Both are likely to be concentrated in the southeast of Surakarta City. These findings imply that the development of leading sectors in Surakarta, such as services, trade, and non-agricultural production, should be focused on increasing efficiency and innovation, not just on increasing the number of workers. In addition, economic policy must consider that, despite the high number of workers, the economic impact may be limited if it is not accompanied by a significant multiplier effect.

Penentuan Kawasan Pariwisata Berbasis Komoditas Unggulan dan Pengaruh Beberapa Variabel Terhadap Pendapatan Asli Daerah Kota Magelang

Original Regional Income is regional income sourced from regional tax results, regional levy results, the results of separated regional wealth management, and other legitimate regional original income, which aims to provide a pass to regions in exploring funding in the implementation of regional autonomy as an embodiment centralized principle. Regional governments are expected to minimize the level of dependence on the central government regarding the management of regional revenues and expenditures. The target of regional development is the development of real, dynamic, harmonious and responsible regional autonomy with an emphasis on districts, cities and municipalities, increasing regional independence and increasingly coordinated development between sectors and between regions as well as between sectoral development and regional development. One component of regional development is tourism development. Magelang City is one of the areas frequently visited by tourists in Central Java Province. is located in a basin with a number of contributors to Magelang City's PAD, one of which is the tourism sector. This research aims to see the influence of Population Number, Number of Domestic Tourists, Number of Foreign Tourists on Regional Original Income (PAD) as well as looking at the leading commodities of tourism areas in Magelang City in 2013-2022. This type of research is quantitative descriptive, testing hypotheses and statistical data for certain uses, as well as time series data. Apart from that, it uses the Location Quotient (LQ) data analysis method, classical assumptions, multiple linear regression analysis, and hypothesis testing using the t test, F test, and Determination Coefficient (R2).

지방소멸의 심화가 사회적경제 의존성에 미치는 영향 분석 - 감마 회귀 모형을 활용한 시군구 수준의 분석

The purpose of this study is to empirically analyze whether the degree of regional extinction intensifies dependency on the social economy. To achieve the purpose of the study, local municipalities in South Korea are utilized as the units of analysis. The dependent variables are proxy indicators measuring dependency on the social economy, while the main independent variable is the regional extinction index. Furthermore, to measure dependency on the social economy, this study utilizes the location quotient, which compares the proportion of the number of corporations, sales, and jobs created by the social economy within the municipality to national levels. Empirical results using gamma regression models indicate that in models where the number of corporations LQ and total sales LQ are set as dependent variables, an increase in extinction risk is associated with increased dependency on the social economy. However, no significant effects is observed in the model where job LQ is the dependent variable.

Analysis of the Role of the Agricultural Sector in the Economy in Batanghari District, Jambi Province, 2019 & 2021

Economic growth is a macro indicator to see real economic performance in a region. The rate of economic growth can be calculated based on changes in GRDP at constant prices for the year in question compared to the previous year. Economic growth can be seen as an increase in the number of goods and services produced by all business fields of economic activity in a region during a year. This research aims to determine the leading agricultural sector in Batang Hari district, Jambi Province in the period 2019 and 2021 . This research uses quantitative research methods with Location Quotient (LQ) analysis which is used to determine leading and non-leading sectors using Statistical Location Quotient ( SLQ) and Dynamic Location Quotient (DLQ) to analyze calculations of ADHK GRDP in Batang Hari Regency.

Determination of Priority Sectors in Economic Development in Maluku Province

This research aims to determine priority sectors in formulating economic development policies in Maluku Province. The methods used in this research are Location Quotient (LQ), Shift Share (SS), and Klassen Typology. The research results show that based on the three methods above, the priority sectors in economic development in Maluku Province are sectors that have superiority, and competitiveness and are among advanced and rapidly developing sectors (prime sectors). These sectors are the Agriculture, Forestry, and Fisheries sectors, the Wholesale and Retail Trade sector, Car and Motorcycle Repairs, the Government Administration, Defense and Mandatory Social Security sectors, and the Education Services sector. This sector is a sector that absorbs a lot of workers. Apart from that, the primary sector is a sector that plays an important role in economic development in Maluku Province. The contribution of the agriculture, forestry, and fisheries sectors indirectly shows that the economic structure of Maluku province is still supported by the traditional economy. Then, geographically, the vast area of Maluku Province, the majority of which is water areas; however, this sub-sector has yet to become the main support for the economy of Maluku Province. For this reason, the Maluku provincial government should prioritize the superior sectors and commodities it owns while still paying attention to other industries and commodities according to their potential and development opportunities in order to encourage the growth of Maluku Province's GRDP for future regional development. The implications of this research can be recommendations for economic planning and development in Maluku Province. The implications of this study can be recommendations for economic planning and development in Maluku Province

The Role of Basic Infrastructure to Strengthen Economic Security in Eastern Indonesia

This study aims to analyze the role of water infrastructure in supporting the development of leading commodities in Maluku and Papua, Indonesia. The 2020 Gross Regional Domestic Product (GRDP) dataset will be analyzed using the Location Quotient (LQ) technique to determine the leading sectors/base commodities with comparative advantages in the Maluku and Papua Provinces. Based on the Location Quotient (LQ) analysis results, it will be combined with a spatial approach to provide an overview of water resources and infrastructure. The results of this study show that water resource infrastructure is related to the housing settlement sector and agricultural commodities in Maluku and Papua. Increasing agricultural productivity has positive implications for Indonesia's food and economic security. Investment in water infrastructure development is needed to support leading sectors.

Tren Sektor Unggulan dan Kualitas Pertumbuhan Ekonomi Kabupaten Brebes Tahun 2018-2022

The research aimed to identify the leading sectors that had the highest contribution to GRDP knows the growth trend of leading sectors, and economic growth quality in Brebes Regency. Analyzed data were collected from BPS, these were GRDP, income per capita, total population, economic growth, and poverty level. Analyse instruments used in the research were location quotient, shift share, Klassen tipology, simple linear regression, Duncan multiple range test, and Williamson index. The leading sector that had the highest contribution to Brebes Regency was agriculture, forestry, and fisheries; the growth trend of leading sectors in 2018-2022 was linear; and, the disparities in the value of income per capita in Brebes compared with neighbor regency/city approached the medium classification. Lastly, the quality of economic growth in the Brebes Regency was poor, measured by the high poverty level.