Location Quotient and Shift Share Esteban Marquillas Approach

International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal

Vol-2, Issue-2, 2018 (IJEBAR)
ISSN: 2614-1280, http://www.jurnal.stie-aas/ijebar
Determination of Leading Sector Sukoharjo Regency:
Location Quotient and Shift Share Esteban Marquillas Approach
Muhammad Raqib1, Mohammad Rofiuddin2

1)
Department of Da'wah Management, Faculty of Ushuludin and Da’wah, IAIN Surakarta
1
Email: [email protected]
2
Faculty of Islamic Economy and Business, IAIN Salatiga
2
Email: [email protected]
Abstract : The purpose of understanding the development of economic sector in

2012-2016 in order to develop and manage the potential of the region in
Sukoharjo. The method used to analyze the leading sectors in this
research is location quotient and shiftshare analysis of Esteban
Marquillas. The result of the research shows that there are eleven
sectors which are the basic sector ie. Manufacturing sector, Electricity
and Gas sector, Large and Retail Trade sector, Automobile and
Motorcycle Reparation, Transportation and Storage sector,
Accommodation and Food Service Activities sector, Information and
Communication sector, Financial and Insurance Activities sector, Real
Estate Activities sector, Business Activities sector, Human Health and
Social Work Activities. Economic sectors are having a competitive
advantage as well as specialization namely in the sectors of the
Manufacturing; Wholesale and Retail Trade; Repair of Motor Vehicles
and Motorcycles; Transportation and Storage; Information and
Communication; Real Estate Activities; and Human Health and Social
Work Activities. Sectors are having the highest three positive values are
the sectors of Manufacturing; Wholesale and Retail Trade; Repair of
Motor Vehicles and Motorcycles; and Information and Communication.
Keywords : Development, Growth, Shift Share Esteban Marquillas
1. Introduction increasing of output in the sectors of the

Growth and regional economic economy.
development becomes a very central matter Economic growth is a benchmark of
to the welfare of society. In the past, land the economy of a region. High and
and natural resources are believed to be the sustainable economic growth is a major
only engine of economic growth and condition or a necessity for the continuity
wellbeing even without a modern of economic development and welfare
economy. However, in the present century, improvement. In economic development in
the main concern began to shift from the the region, the purpose of development
effort of controlling limited resources itself is not far different from the national
through force and conquest to the creation development goals. However, the
of possible prosperity in a modern development process in the region is much
economic system. It is characterized by an more specific (Tambunan, 2001).
International Journal of Economics, Business and Accounting Research (IJEBAR) Page 107
Meanwhile, according to Arsyad (2010), be able to make appropriate policies for
regional economic development represents regional development objectives to be
a process whereby local government and achieved. The most important policy is the
communities manage existing resources policy in determining the economic sector
and form a partnership pattern between to be built to improve the gross regional
local government and the private sector to domestic product of the region.
create new job and stimulates the Furthermore, regional economic
development of economic activity within development is emphasized on sectors are
the region. having a large contribution to gross
The successful of a regional economic regional domestic product.
development can be measured by several Economic development in Sukoharjo
indicators commonly used as a measuring Regency is emphasized on the development
device. The commonly used indicator is the of sectors are having a great contribution in
gross regional domestic product (GDP) preparing gross regional domestic changes.
which can be a general indicator of Gross regional domestic product of
economic performance as a measure of the Sukoharjo Regency is limited in seventeen
progress of a region. Other indicators are economic sectors. Each economic sector
growth rates, per capita income and shifts has a significant contribution in
or changes in economic structure (Sjafrizal, determining and varying and in each year,
2008). its contribution is different. The
Along with the prevailing of regional contribution of economic sector of Central
autonomy, each region must be able to Java province as in Table 1.
explore the potential possessed by each
region. In addition, the region should also
Table 1. The Contribution of Gross Regional Domestic Product of Central Java
Province at 2010 Constant Market Prices, 2012-2016
No Sector 2012 2013 2014 2015 2016

1 Agriculture, Forestry and Fishing 15.41 14.98 14.09 14.11 13.69
2 Mining and Quarrying 1.99 2.01 2.03 1.99 2.24
3 Manufacturing 34.94 35.05 35.50 35.27 34.88
4 Electricity and Gas 0.11 0.11 0.11 0.11 0.11
Water supply, Sewerage, Waste Management
5
and Remediation Activities 0.08 0.08 0.07 0.07 0.07
6 Construction 10.13 10.11 10.02 10.08 10.23
Wholesale and Retail Trade; Repair of Motor
7
Vehicles and Motorcycles 14.62 14.56 14.50 14.29 14.27
8 Transportation and Storage 3.01 3.13 3.25 3.32 3.37
9 Accommodation and Food Service Activities 3.02 3.00 3.07 3.11 3.14
10 Information and Communication 3.57 3.67 3.94 4.09 4.21
11 Financial and Insurance Activities 2.69 2.66 2.63 2.69 2.80
12 Real Estate Activities 1.73 1.77 1.80 1.84 1.86
13 Business Activities 0.30 0.32 0.33 0.34 0.36
14 Public Administration and Defence; Compulsory 2.95 2.88 2.76 2.75 2.67
Social Security
15 Education 3.29 3.43 3.56 3.63 3.72
16 Human Health and Social Work Activities 0.72 0.73 0.77 0.78 0.82
17 Other Services Activities 1.45 1.51 1.56 1.52 1.57
Source: Statistics Indonesia, 2017
Table 1 shows the sectors are having a Estate; Activities; Business Activities;
great contribution in the aggregate of Education; Human Health and Social Work
Manufacturing sector consistently of its Activities. The sectors are having the
contribution is over than 24 percent, greatest and most consistent contribution
although this sector is very dynamic but in namely Manufacturing; Wholesale and
2016 seen decreased. In addition, the Retail Trade; Repair of Motor Vehicles and
Agriculture, Forestry and Fishing sector is Motorcycles; and Construction.
over than 13 percent in overall Similar to Central Java province, at the
contribution, and Wholesale and Retail Regency level the structure of gross
Trade; Repair of Motor Vehicles and regional domestic product is not far
Motorcycles sectors also has contribution different when it is seen from the sector
are over than 14 percent. The sectors which that dominates the highest contribution
are its contribution continues to increase value. The contribution of economic sector
are Transportation and Storage; of Sukoharjo Regency as shown in Table 2.
Information and Communications; Real
Table 2. Gross Regional Domestic Product of Sukoharjo Regency at 2010
Constant Market Prices, 2012-2016
No Sector 2012 2013 2014 2015 2016

1 Agriculture, Forestry and Fishing 10.27 9.86 9.02 9.14 8.55
2 Mining and Quarrying 0.46 0.44 0.44 0.43 0.41
3 Manufacturing 38.16 38.92 39.35 38.34 38.32
4 Electricity and Gas 0.15 0.15 0.15 0.13 0.13
5
and Remediation Activities 0.04 0.04 0.04 0.04 0.04
6 Construction 6.40 6.32 6.19 6.32 6.45
Wholesale and Retail Trade; Repair of
7
Motor Vehicles and Motorcycles 19.36 18.87 18.77 18.75 18.71
9 Accommodation and Food Service Activities 3.70 3.63 3.67 3.71 3.75
11 Financial and Insurance Activities 3.70 3.59 3.43 3.53 3.66
13 Business Activities 0.32 0.35 0.36 0.37 0.38
Public Administration and Defence;
14
Compulsory Social Security 2.48 2.39 2.26 2.25 2.21
15 Education 3.16 3.27 3.41 3.50 3.57
17 Other Services Activities 1.35 1.40 1.44 1.41 1.41
Source: Statistics Indonesia, 2017
Table 2 shows that the sector has a 2. Literature Review

great contribution in aggregate namely the According to Kuncoro (2000)
Manufacturing sector, which is consistently economic development is a
of its contribution is over than 38 percent. multidimensional process, due to economic
Although this sector is very dynamic, but development is not only a change in the
in the last two years, in 2015 and 2016 has economic structure of a country as
decreased in the value of contribution. As indicated by the declining role of the
for the continued increase are agricultural sector and the increasing role
Transportation and Storage; Information of the industrial sector. The development
and Communication; Real Estate paradigm, over the last few decades
Activities; Company Services; Education; continues to experience shift and
Human Health and Social Work Activities. fundamental changes. Various paradigm
The sector has greatest contribution and shifts due to distortions of "failures
most consistent is Manufacturing. (errors)" in applying the existing
Sukoharjo Regency, which is one of development models are as follows:
the regencies in Central Java which has 1. The shift from the situation must
superior and reliable sectors not only at the choose between growth, equality and
provincial level, but also at the national sustainability as non-trade-off options
level. One of the sectors can be seen from to the necessity of achieving the goals
its contribution is Agriculture, Forestry and of development in a "balanced".
Fishing sector, Manufacturing; and 2. The tendency of this approach tends to
Wholesale and Retail Trade; Repair of see the achievement of macro-
Motor Vehicles and Motorcycles. measured development objectives into
Meanwhile, if seen from its contribution in regional and local approaches.
Central Java, the agricultural sector has a Changes in economic structure are
major contribution, but at the level of three defined as a series of changes that are
major leading sectors. Of course, in the interconnected with one another in the
development of more sectors that have the composition of demand, foreign trade,
potential or leading sector will give more production and use of production factors
impact on regional economic development, such as labor and capital needed to support
so there is a need for good management to the process of development and sustainable
manage the existing potential. of economic growth (Kuznets in
Based on the above economic potential Kamaludin, 1998). Furthermore, regional
differences, it is necessary to study the economic development is defined as a
potential economic sectors grown in process whereby local government and
Sukoharjo Regency with the aim of communities manage resources available
understanding the development of and establish a partnership pattern between
economic sector in 2012-2016 in order to local government and the private sector to
the development of Sukoharjo Regency. create new jobs and stimulate the
development of economic activity within
the region (Arsyad, 1999). In addition,
regional economic development can also be
defined as a process that includes the are various elements that interact with each
establishment of new institutions, the other.
development of alternative industries, the
improvement of existing manpower Economic Base Theory
capacity to produce better products and This economic base theory states that
services, identification of new markets, the main determinant of economic growth
knowledge, and development of new of a region is directly related to the demand
companies. for goods and services from outside the
The Pattern of Regional Economic region. The growth of industries that use
Development local resources, including labor and raw
Differences in local conditions bring materials for export, will generate local
implications that the applied style of wealth and creation of job opportunities
development is different. The mere (job creation). This model is useful for
imitation of the pattern of wisdom has been determining the balance between the types
applied and succeeded in an area, not of industries and sectors needed by the
necessarily provide the same benefits for society to develop economic stability
other regions. If it will build an area, the (Arsyad, 1999).
policy should be in accordance with the
conditions of the region concerned. Comparative Advantage and
Therefore, in-depth research on the Competitive Advantage of a Region
situation of each region must be carried out Comparative advantage is only limited
to obtain data and information useful for to the level of comparison that this product
determining the regional development has advantages over other products. The
planning concerned. meaning of "advantages" itself is not
necessarily related to what the user needs
Planning of Regional Economic of the product and also the price level. A
Development new product is said to have a competitive
Local economic development planning advantage, if the elements of the
is commonly considered as planning to advantages of a product can attract and
improve the use of public resources manipulate the interests and needs of
available in that region and to improve the customers or users. The impact will be
capacity of the private sector to create the obvious against the level of sales (Sentana,
value of private resources responsibly 2006).
(Arsyad, 1999). Efficient economic Competitive advantage will result in
development requires a well-balanced increased profit margin if the value chain
planning in which the use of public concept can be applied in every step and
resources, the private sector, small element of
entrepreneurs, cooperatives, large 0 production from production planning to
entrepreneurs, and social organizations product in the middle of the market.
must have a role in the planning process. Similarly, the functions that support it
Through regional economic development (Porter in Sentana, 2006). According to the
planning, a region is considered on the theory of comparative advantage (The
whole as an economic unit in which there Comparative Advantage, a country will
import if its comparative advantage is low
and will export if its comparative 3. The superiority is due to
advantage is high (Ricardo, in Yasin and interrelationship between related
Elhicawati, 2007). Comparative advantage industries.
of the commodity of the country or a 4. The superiority of companies in a
region is that commodity is more superior country due to the country is able
relatively to other commodities in its to compete and produce efficiently.
region (Tarigan, 2005).
Michael Porter (in Yasin and 3. Research Method
Elhicawati, 2007), Competitive Advantage Research method to analyze sectors of
of the country can be sourced from the economic and change of economic
following points. structure in this research using two
1. The superiority (advantage) of a approaches. First by using location
country is due to has factors of question (LQ). Location Quotient (LQ) is a
production, simpler economic development manner
2. The superiority is due to the large with all its advantages and weaknesses.
number of demands. The demand The LQ technique is one of the most
comes from domestic as well as common approaches used in the economic
demand from abroad. The large base model as a first step to understand the
number of demands will encourage sector of activity that becomes driving
company or industrial sectors to growth. The formula of Location Quotient
increase their quantity of (LQ) (Tarigan, 2005).
production.
[ ∑ ] [∑ ∑ ∑ ]
where Yij is the added value of sector i in production is just sufficient to

region j. The result of this coefficient meet the needs of its own region
calculation will be about one with the and cannot be able to be
following understanding. If LQIJ> 1 means exported.
the sector is the base sector and vice versa LQ < 1 : meaning that the sector includes
if LQij <) then the sector is not a base and of non-basis. Production of
only as a supporting sector. In detail the sectors/ commodities in a region
results of LQ calculation yield three criteria cannot meet its own needs so
that is: need of supply or imported from
LQ > 1 : meaning that the sector becomes outside.
the basis or a source of growth. Secondly, in order to analyze the
Sector/ commodity has a leading sectors and changes in economic
comparative advantage; its structure, Shift Share analysis device of
production not only can be meet Esteban Marquilas were used. Esteban
the needs in the region concerned Marquillas modified to the classical
but also can be exported out of shiftshare analysis technique by redefining
the region. the position of competitive advantage as
LQ = 1 : meaning that the sector is the third component of the classical shift
classified as non-base, has no share technique and creating the fourth
comparative advantage. Its shiftshare component of the allocation
effect (Aij). The results of the modification
of Esteban Marquillas to the classical Shift In addition to redefining the
Share analysis can be formulated as components of competitive advantage,
follows (Hermanto, 2000). Esteban Marquillas also created a new
component namely the effect of allocation
Dij = Nij + Mij +C’ij +Aij as the fourth shift-share component. The
Note: effect of allocations for sectors in a region
Dij : Changes of variable of gross is formulated as follows:
regional income i of a region Aij = (Eij – E’ij) (rij – rin)
Nij : Componen of national growth Note:
sector i in region j Aij : Describe the effect of
Mij : Industry Mix of sector i in allocation for sector i in
region j region j
C’ij : Competitive advantage of (Eij-E’ij) : Describe the level of
sector i in region j specialization of sector i
A’ij : Measurement of advantage in region j
and disadvantage (rij-rin) : Describe the level of
competitive advantage of
Redefining of the third component of sector i in region j
competitive advantage to be given Cij Aij is part of the influence of
notation is changed to C'ij. C'ij measures traditional competitive advantage that
competitive advantage or disadvantage indicates the existence of sector i
competitive in sector i in region j. specialization in region j. The effect of
C’ij = E’ij (rij – rin) allocation has two possibilities are positive
Note: and negative.
C’ij : gauge of advantage and
disadvantage 4. Result And Discussion
E’ij : job opportunities of sector i in Location Quotient (LQ) Analysis
region j (homotetic Regional economies can be divided
employment) into two sectors, namely base activities and
Rij : rate of growth of sector i in non-base activities. Base activities are
region j activities that export goods or services to
Rin : rate of growth of sector i in places outside the boundaries of the
referenced region economics of the society concerned or
those that market their goods or services to
The revised shift share equation
persons outside the boundaries of the
contains a new element, namely homothetic
economics of the society concerned. Non-
employment in sector i in region j is to be
base activities are those activities that
given E'ij notation, which is formulated as
provide the goods needed by persons
follows:
residing within the boundaries of the
economics of the society concerned. These
E’ij = Ej (Ej:En)
activities do not export the goods, so the
Note:
wide of its scope of production and of its
E’ij : homothetic employment of
particular market area is local.
sector i in region j
The core logic base of Location and create new job opportunities. The
Quatien is due to the base industry increase in revenues should not only
produces goods and services for markets in increase demand for base industries, but
the region as well as outside the region also increase demand for non-base (local)
concerned, then out-of-region sales will industries. This increase in demand will
generate revenue (income) for that region. encourage increasing of investment in the
Furthermore, the presence of revenue flow industry concerned and other industries.
from outside this region led to an increase The results of calculation of Location
in consumption and investment in that Quotient Sukoharjo Regency is as follows.
region. This will further increase revenue
Table 3. Recapitulation of calculation of Location Quotient Result of Sukoharjo

Regency
No Sector 2012 2013 2014 2015 2016 Average
1 Agriculture, Forestry and Fishing 0.67 0.66 0.64 0.65 0.62 0.65
2 Mining and Quarrying 0.23 0.22 0.22 0.21 0.18 0.21
3 Manufacturing 1.09 1.11 1.11 1.09 1.10 1.10
4 Electricity and Gas 1.34 1.36 1.28 1.21 1.18 1.28
5
and Remediation Activities 0.53 0.53 0.53 0.53 0.55 0.53
6 Construction 0.63 0.62 0.62 0.63 0.63 0.63
Wholesale and Retail Trade; Repair of
7
Motor Vehicles and Motorcycles 1.32 1.30 1.29 1.31 1.31 1.31
8 Transportation and Storage 1.05 1.05 1.05 1.06 1.07 1.05
9 Accommodation and Food Service Activities 1.23 1.21 1.20 1.20 1.19 1.20
10 Information and Communication 1.18 1.18 1.23 1.29 1.29 1.23
11 Financial and Insurance Activities 1.38 1.35 1.30 1.31 1.30 1.33
12 Real Estate Activities 1.33 1.33 1.32 1.32 1.33 1.33
13 Business Activities 1.08 1.08 1.08 1.08 1.06 1.07
Public Administration and Defence;
14
Compulsory Social Security 0.84 0.83 0.82 0.82 0.83 0.83
15 Education 0.96 0.95 0.96 0.96 0.96 0.96
16 Human Health and Social Work Activities 1.09 1.08 1.10 1.13 1.10 1.10
17 Other services Activities 0.93 0.93 0.93 0.93 0.90 0.92
Based on Table 3, there are eleven Information and Communication sector

sectors, which are the basic sector namely (average is 1.23), Financial and Insurance
Manufacturing sector (average is 1.10), Activities sector (average is 1.33), Real
Electricity and Gas sector (average is 1.28), Estate Activities sector (average is 1.33),
Wholesale and Retail Trade; Repair of Company Services sector (average is 1.07),
Motor Vehicles and Motorcycles (average Human Health and Social Work Activities
is 1.31), Transportation and Storage sector (average is 1.10), with the value of LQ
(average is 1.05), Supply of more than 1, meaning that the eleven
Accommodation and Food Service sectors become the basis or become the
Activities sector (average is 1.20), source of growth, has a comparative
advantage, and the results do not only meet Indonesia. Of course, it can be separated
the needs in Sukoharjo Regency but also from the national economic development
can be exported out of the region. The rest that will also affect changes in economic
are non-basis sectors covering the sectors development in the region. So it needs for
of Agriculture, Forestry and Fishing analysis related to changes in development
(average is 0.65), Mining and Quarrying and/or growth of a region.
sector (average is 0.21), Water Supply Shift share analysis divides growth as
sector, Refuse Management, Waste and a variable (D) of change in a region over a
Recycling (average is 0.53), Construction certain period of time into an influence of
sector (average is 0.63), Public national growth (N), industry mix (M), and
Administration and Defence; Compulsory competitive advantage (C). Esteban
Social Security sector (average is 0.83), Marquillas carried out modification to the
Education (average is 0.96), and other classical Shift-share analysis technique by
Services Activities sector (average is 0.92). redefining the position of competitive
Shift Share Marquellas Analysis advantage as the third component and
Economic development in the present creating the fourth shift-share component
era also conform modern development and namely the effect of allocation (Aij). The
globalization without eliminating local results of shift-share analysis Esteban
wisdom in the region in particular. It is Marquillas as follows:
marked with regional autonomy in
Table 4. Results of Shift Share Analysis Esteban Marquillas Sukoharjo Regency,

2012-2016
No Sector Nij Mij C'ij Aij Dij
1 Agriculture, Forestry and Fishing 430.46 -258.76 -153.65 51.29 69.34
2 Mining and Quarrying 19.11 13.12 -96.82 74.62 10.03
3 Manufacturing 1600.07 -14.92 151.52 13.98 1750.66
4 Electricity and Gas 6.12 1.14 -2.80 -0.96 3.50
Water supply, Sewerage, Waste Management and
5 1.77 -1.17 0.87 -0.41 1.06
Remediation Activities
6 Construction 268.29 13.92 26.99 -9.94 299.27
Wholesale and Retail Trade; Repair of Motor
7 811.58 -104.67 12.33 4.00 723.24
Vehicles and Motorcycles
9 Accommodation and Food Service Activities 155.27 33.39 -10.20 -2.31 176.14
11 Financial and Insurance Activities 155.12 35.86 -24.89 -9.36 156.75
13 Business Activities 13.61 13.36 -0.23 -0.02 26.72
Public Administration and Defence; Compulsory
14 104.10 -51.64 -2.61 0.41 50.26
Social Security
15 Education 132.61 91.74 10.73 -0.42 234.65
17 Other Services Activities 56.42 24.71 -6.36 0.48 75.25
Effect of Province Growth (Nij) in in a particular region of the same sector in

Sukoharjo Regency the province reference. This measurement
The result of the analysis in Table 4, allows us to know whether the regional
showing the growth value of the province economy is concentrated to the industry
(Nij) consistently affect the growth of that growing faster than the referenced
Sukoharjo regency. All sectors have economy. The results of the analysis show
positive contribution to the regional that the effect of sector growth is due to the
domestic product of Sukoharjo Regency. industry mix in sectors in Sukoharjo
From the data indicates that the Regency. The highest of three sectors that
contribution of provincial growth to the have the industry mix are the sectors of
highest growth area in the sector of Transportation and Storage, Education,
Manufacturing; Wholesale and Retail Information and Communication. The three
Trade; Repair of Motor Vehicles and sectors are having the highest negative mix
Motorcycles; and Agriculture, Forestry and value are on the sector Agriculture,
Fishing. This shows that the three sectors Forestry and Fishing; Wholesale and Retail
become the dominant direction of Trade; Repair of Motor Vehicles and
development policy in Sukoharjo Regency. Motorcycles; Administration of
However, other sectors also contribute such Government, Defense and Mandatory
as the Mining and Quarrying sector; Social Security. These results indicate that
Electricity and Gas Sector; Water Supply, the sectors are having positive values will
Refuse Management, Waste and Recycling have a positive effect on the change of
sector; Construction sector; Transportation economic growth in Sukoharjo Regency,
and Storage sector; the Accommodation while the negative ones also negatively
and Food Service Activities Sector; affect the economic growth in Sukoharjo
Information and Communication sector; Regency.
the Financial and Insurance Activities
sector; Real Estate Activities sector; Competitive Advantage (C’ij) of
Business Activities sector; the Public Sukoharjo Regency
Administration and Defence; Compulsory The influence of competitive
Social Security Sector; Education sector; advantage explains the competition level of
Human Health and Social Work Activities a particular activity/sector compared to the
sector; other services activities sector. This total of sector growth nationally. This
result identifies that positively affect the component measures changes in an
change of economic growth in Sukoharjo industry in a region due to differences
Regency. The higher growth of the between industrial growth in the area and
province will affect the higher value of the growth of the industry nationally.
changes in economic growth. Positive value of Differential Shifts
indicates that the activities of the sector are
Industry Mix (Mij) of Sukoharjo competitive. The results of the analysis
Regency show that three sectors of the economy
A proportional shift is indicating the with competitive advantage of high
relative change in performance of a sector competitive are in the sector Construction;
Information and Communication; sectors are having the three greatest
Manufacturing. While the three sectors that positive values namely the sector of
do not have dominant advantages namely Information and Communication;
the sector of Agriculture, Forestry and Agriculture, Forestry and Fishing; Mining
Fishing; Mining and Quarrying; Financial and Quarrying. While the sector with the
and Insurance Activities. Sectors are highest value of three negative of the effect
having positive values are identified as of allocation includes the sectors of
having competitive advantage and Construction; Financial and Insurance
positively affect the change of economic Activities; Accommodation and Food
growth in Sukoharjo Regency, while the Service Activities.
negative ones have a negative contribution Result of analysis of allocation effect
to the change of economic growth in of the economic sector of Sukoharjo
Sukoharjo Regency. Regency in 2012-2016 economic sector is
having competitive advantage as well as
The Effect of Allocation (Aij) of specialization namely in the sectors of
Sukoharjo Regency Manufacturing; Wholesale and Retail
Analysis of allocation effect (Aij) has Trade; Repair of Motor Vehicles and
two possibilities that are positive and Motorcycles; Transportation and Storage;
negative which indicate the level of Information and Communication; Real
specialization and competitive advantage of Estate Activities; and Human Health and
economic sectors in a region. The results in Social Work Activities. While the
Table 4 show the effect of allocations on accumulated allocation effect as in Table 5.
Table 5. Summary of Accumulated Allocation Effect (Aij) of Sukoharjo

Regency
No Sector Aij (Eij-E'ij) (rij r in) Note
No No Competitive
1 Agriculture, Forestry and Fishing 51.29 -943.54 -5.44%
Spesialization Advantage
No No Competitive
2 Mining and Quarrying 74.62 -281.08 -26.55%
Spesialization in Competitive Advantace
3 Manufacturing 13.98 591.40 2.36%
place in place
Spesialization in No Competitive
4 Electricity and Gas -0.96 6.85 -14.05%
place Advantage
Water supply, Sewerage, Waste No Competitive Advantace
5 -0.41 -6.81 6.00%
Management and Remediation Activiti es Spesialization in place
No Competitive Advantace
6 Construction -9.94 -684.46 1.45%
Spesialization in place
Wholesale and Retail Trade; Repair of Spesialization in Competitive Advantace
7 4.00 869.03 0.46%
Motor Vehicles and Motorcycles place in place
8 Transportation and Storage 1.13 28.65 3.93%
place in place
Accommodation and Food Service Spesialization in No Competitive
9 -2.31 125.49 -1.84%
Activities place Advantage
10 Information and Communication 19.31 115.66 16.70%
place in place
11 Financial and Insurance Activities -9.36 185.40 -5.05%
place Advantage
12 Real Estate Activities 1.12 105.96 1.06%
place in place
13 Business Activities -0.02 4.18 -0.42%
place Advantage
Public Administration and Defenc e; No No Competitive
14 0.41 -85.16 -0.48%
Compulsory Social Security Spesialization Advantage
No Competitive Advantace
15 Education -0.42 -23.79 1.78%
Spesialization in place
Human Health and Social Work Spesialization in Competitive Advantace
16 0.39 12.19 3.17%
Activities place in place
No No Competitive
17 Other Services Activities 0.48 -19.97 -2.38%
The sectors which have leading Those results also show that the
potential are sectors that having performance of each sector in economic
competitive advantage but cannot be development in Sukoharjo Regency is very
specialization or otherwise have no good in every sector.
competitive advantage but can be a
specialization of those sectors namely in 5. Conclusion
the sectors of Electricity and Gas Based on the results of location
Procurement; Water Supply, Refuse quatien and Esteban Marquillas analysis,
Management, Waste and Recycling; economic development of Sukoharjo
Construction; Accommodation and Food Regency can be concluded that: 1) There
Service Activities; Financial and Insurance are eleven sectors that are base sectors
Activities; Company Services; and namely Manufacturing sector, Electricity
Education. While the sectors do not have and Gas sector, Large and Retail Trade
competitive advantage and no sector, Automobile and Motorcycle
specialization are in the sectors of Reparation sector, Transportation and
Agriculture, Forestry and Fishing; Mining Storage sector, Accommodation and Food
and Quarrying; Administration of Service Activities sector, Information and
Government, Defense and Mandatory Communication sector, Financial and
Social Security; and other Services Insurance Activities sector, Real Estate
Activities. Activities sector, Business Activities
sector, Human Health and Social Work
Performance (Dij) of Sukoharjo Regency Activities Services sector. 2) Economic
The performance of economic sector with economic sectors are having
development in Sukoharjo Regency in this competitive advantage as well as
sectoral case indicates that the sector has specialization namely in the sectors of
the performance (Dij) with the highest Manufacturing; Wholesale and Retail
three positive value are in the sectors of Trade; Repair of Motor Vehicles and
Manufacturing; Wholesale and Retail Motorcycles; Transportation and Storage;
Trade; Repair of Motor Vehicles and Information and Communication; Real
Motorcycles; and Information and Estate Activities; and Human Health and
Communication. While the sector has a Social Work Activities. 3) Sectors are
negative performance does not in place. having performance with the highest value
of positive three are in the sectors Tambunan, Tulus. (2001). Perekonomian
Manufacturing; Wholesale and Retail Indonesia. Jakarta: Ghalia
Trade; Repair of Motor Vehicles and Indonesia.
Motorcycles; and Information and Tarigan, Robinson. (2005). Ekonomi
Communication. Regional: Teori dan Aplikasi Edisi
Revisi. Jakarta: PT Bumi Aksara.
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International Journal of Economics, Business and Accounting Research (IJEBAR)

Peer Reviewed – International Journal

Muhammad Raqib1, Mohammad Rofiuddin2

Abstract : The purpose of understanding the development of economic sector in

Keywords : Development, Growth, Shift Share Esteban Marquillas

1. Introduction increasing of output in the sectors of the

No Sector 2012 2013 2014 2015 2016

No Sector 2012 2013 2014 2015 2016

Table 2 shows that the sector has a 2. Literature Review

where Yij is the added value of sector i in production is just sufficient to

Table 3. Recapitulation of calculation of Location Quotient Result of Sukoharjo

Based on Table 3, there are eleven Information and Communication sector

Table 4. Results of Shift Share Analysis Esteban Marquillas Sukoharjo Regency,

Effect of Province Growth (Nij) in in a particular region of the same sector in

Table 5. Summary of Accumulated Allocation Effect (Aij) of Sukoharjo

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