Analysis of The Influence of The Agricultural Sector, Manufacturing Sector, Transportation Sector, and Trade Sector on The Gross Regional Domestic Product (GRDP) of North Sumatra Province

Abstract

North Sumatra Province has a significant Gross Regional Domestic Product (GRDP) and contributes considerably to national income; however, it still lags behind other provinces. The GRDP from the agricultural sector, manufacturing sector, transportation sector, and trade sector are some of the leading sectors that support the economy of North Sumatra Province. Although these three sectors play a strategic role, their development and contributions show different dynamics. The contributions from each sector exhibit significant variations across various districts/cities in North Sumatra. This study aims to determine and analyze the influence of the agricultural sector, manufacturing industry sector, transportation sector, and trade sector on the Gross Regional Domestic Product (GRDP) of North Sumatra Province. The research utilizes panel data consisting of 33 districts/cities in North Sumatra with 165 observations. The results of the panel data testing using the Fixed Effect Model (FEM) indicate that, partially, the agricultural sector has a positive influence on GRDP, the manufacturing sector influences GRDP, the transportation sector influences GRDP, and the trade sector influences GRDP. Simultaneously, the agricultural sector, manufacturing sector, transportation sector, and trade sector have an influence on GRDP.