Analysis of Leading and Potential Sectors in Enhancing Economic Growth in Asahan Regency

Abstract

This research is motivated by the relatively low economic growth rate in Asahan Regency despite its abundant natural resources. The study aims to identify and analyze the leading economic sectors in Asahan Regency that are competitive in driving economic growth. The research uses secondary data from the Gross Regional Domestic Product (GRDP) of Asahan Regency and North Sumatra Province for the years 2017-2021. To classify the economic sectors of Asahan Regency, the 2017-2021 data is used to identify potential and competitive sectors through the Location Quotient (LQ) and Shift Share analysis methods. The Shift Share analysis results indicate that the service sector is an advanced and rapidly growing sector in Asahan Regency, while the agricultural sector is advanced but under pressure. The LQ analysis results show that the agricultural and service sectors are the base sectors in Asahan Regency. Additionally, the Shift Share analysis reveals that the agriculture, mining and quarrying, electricity, gas, and water supply sectors, along with the service sector, possess competitive advantages in the economy of Asahan Regency. Therefore, based on the results of both analytical tools and sectoral analysis, it can be concluded that the leading sectors in Asahan Regency are those that are advanced, base, and competitive, particularly the agriculture and service sectors.