| dc.description.abstract | Regional economic growth is a key indicator in assessing the success of development at the local level. In the Highland Region of North Sumatra, economic dynamics are influenced by the structural composition of the economy, particularly the roles of basic and non-basic sectors. This study aims to analyze the influence of basic and non-basic sectors on economic growth in nine regencies and cities within the region, namely Simalungun, Toba, Karo, Dairi, Pakpak Bharat, North Tapanuli, Samosir, Humbang Hasundutan, and Pematangsiantar City during the period 2011–2023.
This research utilizes secondary panel data obtained from the Central Bureau of Statistics (BPS). The dependent variable is economic growth, proxied by Gross Regional Domestic Product at constant prices (GRDP ADHK), while the independent variables are the values of basic and non-basic sectors, identified using the Static Location Quotient (SLQ) and Dynamic Location Quotient (DLQ) methods. The data were analyzed using panel data regression with the Fixed Effect Model (FEM), processed using E-Views 13 software.
The results show that the basic sector has a positive and statistically significant effect on economic growth, while the non-basic sector also has a positive effect. Simultaneously, both sectors have a significant influence on regional economic growth. These findings suggest that the development of basic sectors combined with the strengthening of non-basic sectors can serve as an effective strategy to promote sustainable economic growth in the highland region. Therefore, regional development policies should focus on enhancing key economic sectors based on local potential to improve competitiveness and reduce interregional disparities. | en_US |
