Analysis of the Potential of Leading Sectors in Jember Regency Using the Location Quotient (LQ) and Shift-Share Analysis (SSA) Methods to Promote Regional Economic Development
Article Sidebar
Main Article Content
Abstract
Effective regional economic development requires the identification of economic sectors that are the comparative and competitive advantages of a region. Without a clear understanding of local potential, development policies can be misguided and inefficient. This study aims to identify leading sectors in Jember Regency and analyze shifts in its economic structure. We use the Location Quotient (LQ) method to determine the basis and non-basis sectors, as well as Shift-Share Analysis (SSA) to break down the components of economic growth into national growth effects, proportional industry effects, and local competitive effects. The data used is the Gross Regional Domestic Product (GRDP) data of Jember Regency and East Java Province based on constant 2010 prices for the period 2020-2025. The LQ analysis results show that the Agriculture, Forestry, and Fisheries sector (LQ=1.85) and the Accommodation and Food and Beverage Services sector (LQ=1.42) are the base or leading sectors in Jember Regency. Meanwhile, the SSA analysis reveals that the Agriculture, Forestry, and Fisheries sector has a positive total growth value driven by strong local competitive effects, indicating competitive advantage. Conversely, the manufacturing sector shows negative competitive effects, indicating a decline in competitiveness. This study concludes that economic development policies in Jember Regency should focus on strengthening the identified leading sectors through incentives, supporting infrastructure development, and empowering MSMEs. These results provide a strong scientific basis for more targeted and sustainable strategic regional economic development planning.
Article Details
How to Cite
References
Astasari, C. P., Ibrahim, J. T., & Harpowo, H. (2018). Analisis Location Quotient (LQ) Komoditas Cabai di Kabupaten Kediri. Agriecobis : Journal of Agricultural Socioeconomics and Business, 1(2), 11. https://doi.org/10.22219/agriecobis.Vol1.No2.11-22
Audretsch, D. B., Link, A. N., & Walshok, M. (2015). The Oxford Handbook of Local Competitiveness (D. B. Audretsch, A. N. Link, & M. Walshok, Eds.). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199993307.001.0001
Geppert, K., & Stephan, A. (2008). Regional disparities in the European Union: Convergence and agglomeration. Papers in Regional Science, 87(2), 193–218. https://doi.org/10.1111/j.1435-5957.2007.00161.x
Isard, W. (1975). Introduction to Regional Science. In Land Economics (Number 3). Prentice-Hall.
Miller, J. R. (1998). Spatial aggregation and regional economic forecasting. The Annals of Regional Science, 32(2), 253–266. https://doi.org/10.1007/s001680050073
Montanía, C. V., Márquez, M. A., Fernández‐Núñez, T., & Hewings, G. J. D. (2021). Spatial shift‐share analysis: Some new developments. Papers in Regional Science, 100(2), 305–326. https://doi.org/10.1111/pirs.12575
Myrdal, G. (1957). Economic Theory and Underdeveloped Regions. Duckworth.
Perroux, F. (1950). Economic Space: Theory and Applications. Quarterly Journal of Economics, 64(1), 89–104.
Richardson, H. W. (1972). Regional economics. Scottish Journal of Political Economy, 19(3), 297–306. https://doi.org/10.1111/j.1467-9485.1972.tb00526.x
Sishidiyati, S., Wahed, M., Aris, K., & Perdana, P. (2022). Analisis Shift Share bagi Penguatan Daya Saing Daerah Kabupaten/Kota di Jawa Timur. Journal of Regional Economics Indonesia, 2(2), 78–91. https://doi.org/10.26905/jrei.v2i2.7219
Stevens, B. H., & Moore, C. L. (1980). A Critical Review of The Literature on Shift‐Share as A Forecasting Technique. Journal of Regional Science, 20(4), 419–437. https://doi.org/10.1111/j.1467-9787.1980.tb00660.x
Stimson, R. J. (Robert J., Stough, Roger., & Roberts, B. H. (2006). Regional economic development : analysis and planning strategy. Springer.
Sudirman, Hati, E. P., Syukran, M., & Afrianto, I. (2025). Food Subsidy Policies and Their Impact on Food Security: A Narrative Review in the Indonesian Context. Journal of FoodSecure Indonesia, 1(1), 66–78. https://doi.org/10.61978/foodsecure.v1i1.626
Syahirul Alam, M. D. S. A., Rhama, B., Setiawan, F., Utami Irwan, A. I., & Selvia, F. (2024). The Indonesian Food Security Policy: Mapping of Traditional Markets in Central Kalimantan. Policy & Governance Review, 8(2), 212. https://doi.org/10.30589/pgr.v8i2.906
Szczepańska-Woszczyna, K., Gedvilaitė, D., Nazarko, J., Stasiukynas, A., & Rubina, A. (2022). Assessment of Economic Convergence Among Countries in The European Union. Technological and Economic Development of Economy, 28(5), 1572–1588. https://doi.org/10.3846/tede.2022.17518
Tarigan, R. (2005). Ekonomi Regional Teori dan Aplikasi. PT Bumi Aksara.