THE ANALYSIS OF LEADING ECONOMIC SECTOR IN NORTH SUMATRA

Abstract

v>The economic sector played an important role in national development, in order to have amore advanced national development paradigm shift, Plans or strategies were needed toencourage the economic growth. It was important to explore and to identify the potentialdevelopment of the regional economic sector which was used as leading sector to providedirection and decision-making material for the parties in creating added value andcompetitiveness of the leading sector. Therefore, this study aimed to analyze what economicsectors are based on leading sectors or what sectors that played a greater role as a trigger forregional economic development in North Sumatra from 2015 to 2019. The type of data usedin this study was secondary data from Gross Regional Domestic Product (GRDP) economicsector of North Sumatra which were obtained from the Central Statistics Agency (CSA) ofNorth Sumatra. The analysis methods used were Location Quotient (LQ) and Shift Share. Theresults of this study indicated that North Sumatra had five leading sectors, namely agriculture,forestry and fisheries sectors; water supply, waste management, waste and recycling sectors;construction sector; wholesale and retail trade, car, and motorcycle repair sectors; and thereal estate sector. The agriculture, forestry, and fisheries sectors were the biggestcontributions in North Sumatra from the overall analysis carried out.Keywords: Economic Sector, Leading Sector, Location Quotient (LQ), Shift Share