Analysis of Production Sectors in Creating Main Sector in Regional Economy (Case Study: North Sumatra Province - Indonesia)

Production Sector, Superior Sector and Economic Growth.

Authors

  • Togu Harlen Lbn Raja Sekolah Tinggi Ilmu Ekonomi LMII, Sekolah Tinggi Ilmu Ekonomi Sultan Agung
  • Sofiyan . Sekolah Tinggi Ilmu Ekonomi LMII, Sekolah Tinggi Ilmu Ekonomi Sultan Agung
January 20, 2018

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God created the earth and all its contents that can be utilized by humans as well as possible so that human needs can be fulfilled and man can live peacefully on earth created by God Almighty.

All creation of God Almighty must be managed properly through the empowerment of existing production sectors so as to provide value for life both in terms of economic, social and cultural.

The production sectors in North Sumatera Province, Indonesia are very rich and if managed well will contribute to sustainable economic improvement of society and region.

To see which sector is the most dominant in contributing to regional income can be used with Location Quotient (LQ) method.

Based on the analysis of Location Quotient (LQ) Method on Gross Regional Domestic Product (GRDP) of North Sumatera Province and National Domestic Product from 2010-2014, it can be explained that the leading sectors in North Sumatera Province are agriculture sector, manufacturing industry sector, construction sector, trade sector, hotel, restaurant, transportation sector, communications and financial sector, company and company services because  LQ  > 1.

Then the non-sectors of the sector are mining, electricity, gas and water sector and services sector where LQ < 1.