Analysis of the potential and performance of key sectors in driving economic growth as part of efforts to address underdeveloped areas in the Nias Islands, North Sumatra Province

Nadya Keisha Ferdinasari; Syamsul Huda

doi:10.55927/ijsmr.v4i6.64

Authors

Nadya Keisha Ferdinasari UPN “Veteran” Jawa Timur
Syamsul Huda UPN “Veteran” Jawa Timur

DOI:

https://doi.org/10.55927/ijsmr.v4i6.64

Keywords:

leading sectors, economic growth, underdeveloped regions, regional development, Nias Islands

Abstract

This study investigates the leading economic sectors in the Nias Islands, examines their role in supporting underdeveloped area development, and analyzes the effects of leading and non-leading sectors on economic growth. Using GRDP data from five regencies/city during 2015–2024, the study employs Location Quotient (LQ), Dynamic Location Quotient (DLQ), Shift-Share, Klassen Typology, and simple linear regression analyses. The results identify agriculture, forestry, and fisheries as the dominant leading sectors. However, both leading and non-leading sectors have negative and statistically insignificant effects on economic growth. These findings indicate that the economic potential of the region has not been fully optimized and emphasize the importance of downstream development, human capital enhancement, and stronger regional economic linkages.

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