Analysis of Economic Base and Sector Growth Contribution between Sidoarjo Regency and East Java Province: LQ, DLQ, and Shift-Share Approaches

Abstract

Understanding the sectoral structure and growth performance of regional economies is essential for effective policy formulation. Variations in economic structures between regions reflect differences in comparative advantages and sectoral competitiveness. This study analyzes the economic base and sectoral growth contributions of Sidoarjo Regency relative to East Java Province using an integrated regional economic analysis framework. We apply the Location Quotient (LQ), Dynamic Location Quotient (DLQ), and Shift Share methods to identify leading sectors, assess growth dynamics, and evaluate regional competitiveness. The study utilizes secondary data from Gross Regional Domestic Product (GRDP) at constant prices by industrial classification for the period 2020–2024, sourced from official Statistics Indonesia publications. The results indicate that Sidoarjo Regency’s economic base is strong in the manufacturing industry, electricity and gas supply, and transportation and warehousing sectors, which consistently exhibit higher concentration levels than the provincial average. Dynamic analysis reveals that several sectors in Sidoarjo Regency grow at a faster rate compared to similar sectors in East Java Province, suggesting favorable development prospects. Additionally, Shift Share analysis shows that sectoral growth in Sidoarjo Regency is influenced not only by overall provincial economic growth but also by regional industrial structure and competitive advantages.Overall, the findings suggest that Sidoarjo Regency has a competitive and dynamic economic structure, particularly in industry- and logistics-based sectors. These insights have implications for regional development planning by highlighting the importance of strengthening leading sectors while promoting balanced sectoral growth.