Non-base Sectors Research Articles

Prioritas Pengembangan Usaha Mikro, Kecil dan Menengah (UMKM) Sektor Non-Unggulan Provinsi Jawa Tengah

One way to find out regionals’ potentials is by calculating location quotient (LQ) in order to identify basic sectors of regions. Previous studies have shown that policy advices given were to pay attention on the basic sectors to improve the regional economy, with less discussion on non-basic sectors. The aims of this study are: (1) to access whether there are trickle down effects from basic to non basic sectors based on LQ calculation, (2) determine non basic and sub sectors of Micro, Small and Medium Enterprises (MSMEs) to be prioritized for development based on Central Java Province’s Medium Term Development Planning. LQ calculations during 2010 to 2016 period show that from 17 economic sectors in Central Java, education services sector was the only sector that a non-basic sector in 2010 and became a basic sector in 2016. LQ results also show that four sectors have always been basic sectors and eight sectors have always been non-basic sectors, the two sectors had changed but returned as before in the next year and two sectors changed from basic sectors to non-basic sectors. This study suggests that Central Java government should pay attention to the non-basic sectors of MSMEs in order to improve the economy of Central Java.

Determining strategies for water, energy, and food-related sectors in local economic development

Water, energy, and food (WEF) related sectors are important to support people’s life in a region. Resource evaluation is one of the stages in resource management to ensure that the existence of those sectors is provided sustainably. The assessment of the agglomeration level and growth of each sector in economic development can give better insights for local stakeholders either government bodies or private firms to improve sustainable management of these sectors. The objectives of this paper are to portray the agglomeration level and recent growth of WEF related sectors in local regions in Indonesia, and to determine possible sustainable development strategies. The location quotient (LQ) and competitive position (CP) analysis methods are employed in this regard. By analysing Gross Regional Domestic Product (GRDP) between 2000 and 2015, basic and non-basic sectors have been determined. Results show that the general characteristics of WEF related sectors in this region can be distinguished clearly based on its main economic development focus. Results show recent growth in WEF sectors locally, from which possible strategies for future sustainable development are formulated that could be considered in the evaluation and planning process. This approach can be expected to assist local government and stakeholders in undertaking preliminary evaluation, in particular the availability of WEF resources, ensuring that development meets local and national sustainable development targets.

ANALISIS SEKTOR BASIS DAN NON BASIS DI KABUPATEN BOLAANG MONGONDOW TIMUR

This study aims to determine what sectors are the base and non-base sectors in East Bolaang Mongondow Regency. This study was conducted for three months starting from August to November 2017 in East Bolaang Mongondow Regency. The data used in this study is secondary data obtained from the Central Bureau of Statistics (BPS) Kotamobagu City. The data is in though using descriptive analysis research method. The research result showed that the sectors that are the base sector in East Bolaang Mongondow Regency are Electricity and Gas Procurement, Construction, Information and Communication, and Other Services sectors.*jnkd*.

Economic Base Analysis of Water-Energy-Food Sectors Using Location Quotient Techniques: A Case of West Java Province

Water, energy and food are the most crucial sectors to be developed due to its importance for human life. The availability, accessibility, and quality of those three commodities have to be ensured for the whole people in a region. This research was conducted to study the existence of water, energy and food related sector compare with other sectors in West Java Province by using one of economic base approaches so called Location Quotient (LQ) method. By analysing gross regional domestic products (GRDP) year 2011-2015 at constant 2010 market prices, basic and non-basic sectors have been determined. The results show how the static and dynamic location quotient (SLQ & DLQ) analysis were effective to figure out general situation and characteristic of basic and non-basic sector in this region. This composite approach is expected to assist local government and stakeholders in undertaking preliminary evaluation in particularly water, energy and food sectors evaluation to improve their security. Furthermore, water, energy, and food related sectors mostly in quadrant III and IV, indicating that serious actions have to be taken particularly by local government to improve production of those basic commodities. Integrated measures are expected to maintain their availability in the forthcoming years.

ANALISIS IDENTIFIKASI SEKTOR PEREKONOMIAN SEBAGAI SEKTOR BASIS DAN SEKTOR POTENSIAL DI KOTA BOGOR

This study aims to determine the sectors that become the basis sector and non-base in the city of Bogor, then to know the performance of each sector in the city of Bogor, and to know the sector that became a potential sector in the city of Bogor. The research was conducted by using Location Quotient / LQ method. In the city of Bogor, from the period of 2011 to 2015 there is one sector of the highest base of electricity and gas procurement sector. Of the 16 economic sectors, the economic sector including the basic sector in 2011 is the procurement of electricity and gas, the transportation and warehousing sectors, the financial services sector and insurance and other services sectors. In addition to these four sectors in 2011, in 2012-2015, it increased by 7 sectors, to 11. The additional sectors were water supply, waste management, waste, construction, and large and retail trade sectors; car and motorcycle repair, accommodation, food and beverage sector, information and communications sector, corporate services sector, health services sector and social activities. then that included in the non-base sector is the other five sectors.In the city of Bogor the performance of the economic sector can be explained that the sector that has the average value of Regional Growth (PR) is the highest sector of procurement of electricity and gas. This value indicates that the growth of electricity and gas procurement sector in Bogor City is higher than that of Indonesia. In Bogor City from 2011 to 2015 included in the potential sector is sector. Then from these sectors, the most potential sector or the most potential sector is the electricity and gas procurement sector.From the results of research that has been obtained by researchers, the researchers provide suggestions that must be taken are as follows: First, the base sector should be more maintained and developed again without exclude development against other sectors. The electricity and gas procurement sector that contributes to the GRDP should be developed by industrializing in cooperation with investors, so that the contribution from the gas and electricity procurement sector can increase again. Second, planning in development should be given to sectors that have the potential to be developed as a top priority so that development can be carried out more optimally.

Development of Center for Village Economic Growth: The Case Study of Lombok Barat Regency, Nusa Tenggara Barat Province, Indonesia

This study aims to determine the leading sector or basis sector to be prioritized in developing the center of economic growth in rural areas of Lombok Barat Regency, Nusa Tenggara Barat Province. The method used is Location Quotient (LQ). The analysis result shows that the leading sector in Lombok Barat Regency, where the LQ value is greater than 1 for the period of 2010-2013 were electricity, gas and clean water, construction and services sector, while the others including to non-base sector. During 2010 to 2013 the basis sector in Lombok Barat Regency has changed slightly each year. This is indicated by the decline in productivity in the manufacturing sector in 2012 to 2013, so the sector is no longer become a basis sector in Lombok Barat Regency. However, for the long term, the center of rural economic growth is not only based on one basis sector alone because of the dynamics of development that causes the change. Recently, the Lombok Barat Government prioritizes the tourism sector, so that it can be a leading sector even not becoming a basis in establishing a center of rural economic growth. Refer to the results of the study, we propose the Government of Lombok Regency to prioritize electricity, gas and clean water in developing center of economic growth.

MULTIPLIER EFFECT PERTANIAN NANAS (Ananas Comosus) TERHADAP PENYERAPAN TENAGA KERJA DAN PENDAPATANMASYARAKAT DI DESA KUALU NANAS, KECAMATAN TAMBANG, KABUPATEN KAMPAR, PROVINSI RIAU

The purpose of this research is to know the Multiplier Effect of pineapple agriculture in Kualu Nanas village towards the absorption of manpower and community income.This research was conducted in the village of Kualu Nanas, Tambang Subdistrict, Kampa Regency, Riau Province. This research is descriptive quantitative. The population and sample of this research are pineapple farmer in Kampung Riau Village, with 4 sample by looking at seller and industry by using percentage method and using formula to measure multiplier effect.This research found: (1) Multiplier Effect of pineapple agriculture on the absorption of labor affecting service sector, industry and pineapple trader, the value of Multiplier Effect is 1,195. This value shows every addition of one unit of labor base sector (pineapple agriculture) it will result in the addition of non-base sector employment as much as 0.195 times. If the increase of manpower as many as 10 people in the pineapple agriculture sector (base) it will create the opening of employment as much as 2 people in the non-base sector. (2) Multiplier Effect of pineapple agriculture on revenues affects the pineapple industry and trade with a grade of 3.04. This shows that every increase of one unit of pineapple agriculture sector (base) will result in an increase in non-base sector by 2.04 times. If the income increase is Rp.1000. In the base sector it will increase the revenue of Rp. 2.040. In the non-base sector. From the above results with the existence of pineapple agriculture will cause Value added or added value for other sectors.

PERANAN SEKTOR PERTANIAN TERHADAP PEREKONOMIAN KABUPATEN BOLAANG MONGONDOW SELATAN

This study aims to determine the role of the agricultural sector to the economy of South Bolaang Mongondow Regency and its development in the period of 5 years ie in 2010 until 2014 and also to know the agricultural sector is the base or non-base sector. The data used is secondary data. This secondary data is obtained from the relevant agencies namely the Central Bureau of Statistics of North Sulawesi Province. The data is then analyzed using contribution formulas, growth formula and Location Quotient (LQ) analysis. The results showed that the agricultural sector is the largest contributor to the economy of Bolaang Mongondow Selatan Regency. This can be seen from the calculation of contribution and development of agricultural sector contribution to South Bolaang Mongondow Regency PDRB from 2010 to 2014. Based on the results of research also known that the development of agriculture sector to PDRB shows an increase that is from 2010-2014 with the largest increase occurred in 2013 with growth reached 5.82%, this can be interpreted that the productivity of agricultural sector in South Bolaang Mongondow Regency is good. From the analysis result using LQ, it can be seen that agriculture sector is base sector in South Bolaang Mongondow Regency, it means the role of agricultural sector in Bolaang Mongondow Selatan Regency is bigger.

ANALISIS EXPORT BASE TERHADAP PERTUMBUHAN EKONOMI DI PROPINSI DATII JAWA TIMUR PERIODE 1997-2001

The growth of many economic sectors can support mutually. Therefore, it needs to analyze the sectors which have potency to be basis sector and non-basis sectors. Some activities of economic sector in an area is basic, it is means that its growth rises and determines development of the area entirely, while activities of non-basic economic sector is consequence of the development entirely. More further, to make clearer the identification to the activity of economic sector, it needs to analyze the large of multiplier of the basis sector activity to the region income and the leaking level of region income which occurred as result of basis sector activity.The research area is East Java province, and object of PRDB research sector ally in East Java province in 1997-2001 and PDB Indonesia is as references. This research is explorative. To analyze the basis sector is used LQ method.

Hierarchical Regional Disparities and Potential Sector Identification Using Modified Agglomerative Clustering

Disparities in regional development methods are commonly identified using the Klassen Typology and Location Quotient. Both methods typically use the data on the gross regional domestic product (GRDP) sectors of a particular region. The Klassen approach can identify regional disparities by classifying the GRDP sector data into four classes, namely Quadrants I, II, III, and IV. Each quadrant indicates a certain level of regional disparities based on the GRDP sector value of the said region. Meanwhile, the Location Quotient (LQ) is usually used to identify potential sectors in a particular region so as to determine which sectors are potential and which ones are not potential. LQ classifies each sector into three classes namely, the basic sector, the non-basic sector with a competitive advantage, and the non-basic sector which can only meet its own necessities. Both Klassen Typology and LQ are unable to visualize the relationship of achievements in the development clearly of each region and sector. This research aimed to develop a new approach to the identification of disparities in regional development in the form of hierarchical clustering. The method of Hierarchical Agglomerative Clustering (HAC) was employed as the basis of the hierarchical clustering model for identifying disparities in regional development. Modifications were made to HAC using the Klassen Typology and LQ. Then, HAC which had been modified using the Klassen Typology was called MHACK while HAC which had been modified using LQ was called MACLoQ. Both algorithms can be used to identify regional disparities (MHACK) and potential sectors (MACLoQ), respectively, in the form of hierarchical clusters. Based on the MHACK in 31 regencies in Central Java Province, it is identified that 3 regencies (Demak, Jepara, and Magelang City) fall into the category of developed and rapidly-growing regions, while the other 28 regencies fall into the category of developed but depressed regions. Results of the MACLoQ implementation suggest that there is only 1 regency which falls into the basic-sector category (Banyumas), while the other regencies fall into the non-basic non-competitive sector category.

PERANAN SEKTOR PERTANIAN DI KABUPATEN MINAHASA TENGGARA

This study aimed to assess the role of the agricultural sector in Southeast Minahasa Regency. The role was measured by the contribution of the agricultural sector in GRDP and the position of the agricultural sector in the regency economy, whether as it was a base or non-base sector. This research was conducted in Southeast Minahasa Regency. The data used were collected from the Central Bureau of Statistics, both South Minahasa and North Sulawesi offices, Planning Board (Bappeda) of Southeast Minahasa, and the Agricultural Agency of Southeast Minahasa Regency. The data were analyzed by calculating the contribution of the agricultural sector, LQ and DLQ. The results showed that inspite of the drop in recent years, the agricultural sector remained had the largest contribution in GRDP of Southeast Minahasa Regency. Based on LQ analysis, it was shown that the agricultural sector was one of the four base sectors. Other base sectors were mining and quarrying, manufacturing, and construction sectors. Furthermore, from five sub-sectors within the agricultural sector, two of them were base sub sectors, namely food crops and plantation, while livestocks, forestry and fisheries were non-base sub-sectors. Based on DLQ analysis, the position of the agricultural sector in the future would remain as a base sector. There would be several sub-sectors in agriculture that had the potential to become base sub-sectors in the future, namely food crops, plantation, livestock and forestry, while fisheries sub-sector was predicated to remain as a non base sub-sector in the future.

Klasifikasi Pertumbuhan, Sektor Basis dan Kompetitif Kota Jambi

This study aims to determine the classification of economic growth in the city of Jambi, base and non-base sectors in the economy of the city of Jambi, Competitive sectors in the economy of the city of Jambi and to determine the leading sectors in Jambi city.The results showed that based on the analysis tipology Klassen, there are three (3) sectors forward and grow exponentially (quadrant I), namely manufacturing industry, trade sector, hotel and restaurant as well as transport and communication sectors. During the period 2000-2012 the leading sectors in the city of Jambi based analysis of location Quetiont (LQ) there are as many as seven sectors, namely Manufacturing (LQ = 1.37), sector Electricity, Gas and Water (LQ = 3.25), Construction sector (LQ = 1.61), the sector of Trade, Hotels and Restaurants (LQ = 1.38), transport and communications sector (LQ = 2.52), Financial sector, Leasing & Business Services (LQ = 1.76) Offices and Services sector (LQ = 1.44). Based Shift Share Analysis for the period 2000-2012, the sectors that possess proporsioal growth component value (P) positive namely Mining and Quarrying sector, sectors Electricity Gas and Water, Building sector, the hotel and restaurant trade sector, as well as the financial sector, leasing and services company. Sectors which show the value of diffrential Shift (D) is positive Manufacturing sector, trade sector, hotel and restaurant as well as transport and communications sectors. Based on a combined analysis of three tools of analysis shows that the sector is the dominant sector in the sector that belong criteria developed and grown by leaps and bounds, and competitive sector basis is the sector of Trade, Hotels and Restaurants.

Analisis Location Quotion versus Sumbangan Terhadap Pendapatan Domestik Regional Bruto dalam Penentuan Kawasan Ekonomi Basis di Provinsi Lampung

This study aims to determine the Basis Sector and Non-Base Sector of the economy in Lampung Province. This research was conducted in Lampung from September to December 2020 with the data analysis tools used were Location Quaton Analysis (LQ) and analysis of the contribution of the economic sector to GRDP. The results of the study used five years of data (2015-2019). Lampung Province has the top 4 leading economic sectors (Primadona), namely the Agriculture, Forestry, Fishery, Forestry, and Fishing sectors. This is indicated by the value of LQ = 2.27 and being able to contribute to the highest GDP of Lampung Province, which is 29.88%.

Estimating Dynamic Impacts of the Seafood Industry in Alaska

This study estimates the dynamic impacts of the seafood industry and investigates multivariate relationships between basic and nonbasic sectors. The study regions are two fishery-dependent regions in Alaska, which are heavily dependent on extra-regional inputs such as non-resident labor and imports of intermediate inputs. This study follows Johansen's approach and develops a vector autoregressive error correction model, which has the advantage of properly attributing the impact of shocks, directly estimating long-run relationships, and identifying the process of adjustment by nonbasic sectors to the long-run equilibrium. Results show that the impacts of the seafood industry are relatively small in the two study regions, whose economies are characterized by large leakages of labor income and large imports of inputs.

Large Real Estate Developments, Spatial Uncertainty and Integrated Land Use and Transportation Modeling

In the past 10 years, integrated land use and transportation modeling has received considerable attention in the scholarly literature. This academic interest is slowly yielding practical applications. In the USA, many metropolitan planning organizations (MPOs) and state departments of transportation are beginning to implement these types of model for the first time. While many improvements have been made to these models, and the value of these improvements should not be understated, much work still remains. One of the most challenging problems in land use modeling is how floorspace (buildings) is built and occupied. The purpose of this article is twofold: first, to draw attention to insufficiencies in the representation of floorspace developer behavior-particularly as it applies to large, urban-edge projects – within current integrated land use and transportation models and, second, to determine the necessity of explicitly accounting for such projects within these models. The Sacramento MEPLAN model will be used together with historical development records to demonstrate and test these assertions. Single large developments are modeled with a common year of development, size, and location. Among the findings, large developments are fairly common in the Sacramento region and make up a considerable amount of floorspace development in absolute terms, large basic sector developments have more of an impact and are therefore more important to explicitly account for than are large non-basic sector developments. A single large basic sector development modeled in a 20-year forecast has a significant impact on zonal outputs. Recommendations are put forward regarding the use of this research in practical modeling exercises.

Teori Pertumbuhan Berbasis Ekonomi (Ekspor) : Posisi Dan Sumbangannya Bagi Perbendaharaan Alat-Alat Analisis Regional

The determinants of regional growth are demand and supply. Demand as a factor for explaining regional growth inquires where the demand comes from and traces its impact through the regional economic system, where a demand for a regional output gives rise to other regional output by way of backward linkages. The export-based theory of growth claims demand as the determinant of regional growth. It seeks to identify the region’ s export activities, to forecast the growth in the activities, and to evaluate the impact of that additional export activity on the other or non-basic activities of the region. The export-based theory plays the role of identifying which sectors/ industries are basic and which ones are non-basic after those sectors/ industries undergoing a shift-share analysis. The export –based theory offers various techniques of determining what a basic sector industry is and various wyas of calculating economic base multipliers. The export-based theory has some disadvantages: no inter-regional inter-industry interdependence, short-run analysis, etc. However, one thing the export-based theory can contribute is that it is useful for small regions like a district (kecamatan), regency (kabupaten) in determining their ability to export and is the first to apply the macro-economic model of income determination to regions. Keywords: basic & non-basic sectors, location quotient, economic base multiplier

An Assessment of the Assignment Method in Economic Base Analysis

Numerous techniques have been devised to make economic base analysis more cost-effective. The simplest of these, the assignment or assumption method, allocates the entire employment (income) of each industry to either the basic or nonbasic sector of the regional economy. Unfortunately, employment data have not been generally available in a form appropriate for evaluation of the assignment method. This paper combines a unique body of survey-generated employment data with OLS regression procedures in providing such an evaluation. Competing values of economic base multipliers, derived from the assignment method and the “correct” benchmark method, are estimated for various types of communities. These estimates, reflecting two rather different interpretations of the economic base logic, are shown to be remarkably similar in size, but not in composition. The study uses the Arizona Community Data Set, a data base covering 47 towns in the U.S. Southwest

Overbuilding, real estate lending decisions, and the regional economic base

The primary purpose of this paper is to evaluate the causes of overbuilding in the context of economic base theory. A second and closely related purpose is to determine if the economic base multiplier effect is stronger in the long run. Construction decisions depend on the strength of the local economy. Since basic activity is highly cyclical, if there are significant lags in the multiplier process running from basic to nonbasic sectors, then growth in non-basic employment will continue when the basic sector slows or declines. Hence, overbuilding may be, in part, a result of false signals about future growth in the local economy to builders, developers and lenders at the time a project is conceived. In addition, one of the important sources of the lags in the multiplier process is the construction sector. Potential solutions to overbuilding are discussed in an economic base context. The implications for bank regulation, bank lending and feasibility analysis are discussed.

Employment Linkages from a Modified Shift-Share Analysis: An Illinois Example

Weak economic conditions in rural areas are reflected in labor markets. In rural Illinois counties the labor force,defined as those employed plus those looking for work, declined by an average of one percent per year from 1980 to 1987, and the average annual loss of the employed labor force was even greater (1.4 percent). The urban counties of Illinois had growth in both the labor force and the employed labor force of 0.6 percent per year over the same time period! The purposes of this study are: (l) to demonstrate the applicability of using a modification of shift -share analysis to examine the recent economic performance of Illinois counties heavily dependent on production agriculture, (2) to determine whether any specific sectors in farm dependent counties exhibit competitive advantages, and (3) to examine the effect of growth in base sectors on the performance of nonbase sectors.

FIRM ENTRY AND EXIT: CAUSALITY TESTS AND ECONOMIC‐BASE LINKAGES*

ABSTRACT One of the foundations of applied regional economics down through the years has been economic base theory (EBT). EBT presumes that economic activity within the basic sector unidirectionally causes economic activity in nonbasic sectors. In recent years, however, increasing attention has been given to the possibility that traditionally nonbasic activities (e.g., services) may be quite important in determining a region's total economic activity. In this paper, we examine the nature and direction of causality of economic activity within a regional economy. Using novel data on entry and exit of firms, the empirical analysis provides new insights into the strengths and weaknesses of traditional economic base theory.