Analysis of the Influence of Regional Leading Sectors on Economic Growth in West Aceh District, Aceh Province

Abstract

West Aceh district is one of the old towns in the South West Region. This district is identified as the region which has various leading economic potentials especially in agricultural sector that can increase it’s economic growth. This study aims to analyze the influence of regional leading sectors on economic growth in this district. Furthermore, the data used in this study is secondary data (1997-2016) which is retrieved by Central Bureau of Statistics Aceh Province (BPS) and Regional Development Planning Agency (Bappeda) of West Aceh District. The method used is quantitative method applying Location Quotient (LQ) analysis and simple linear regression. Based on the result of the research, it was obtained that the correlation coefficient value is 0.642 and the coefficient of determination value is 41.2%. Moreover, regression equation value is Y = 7.953 – 1.064X1+e. Therefore, it is suggested that local government increases the previous leading sectors and further diverts the potential of non-leading sectors become potential leading sectors thus regional economic growth is increasing.