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Ayu Hartanti
Institut pertanian bogor

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Analysis of Leading Sectore and Determinants Regional Development Inequality: A Combine Location Quotient, Shift Share and Panel Data Approach in Southern West Java Ayu Hartanti; Tanti Novianti; Dedi Budiman Hakim
Journal Public Policy Vol 12, No 3 (2026): July
Publisher : Universitas Teuku Umar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35308/jpp.v12i3.14781

Abstract

This study aims to identify leading sectors that drive regional economic development and to examine the determinants of regional inequality in Southern West Java. Despite substantial development progress in West Java Province, regional disparities remain relatively high, particularly in the southern region, as reflected by the Williamson Index in recent years. This study employs secondary data obtained from official statistical publications and relevant government institutions. The analysis applies Location Quotient (LQ) and Shift–Share methods to identify leading sectors, followed by panel data regression to examine the determinants of regional inequality. The novelty of this research lies in the integration of sectoral analysis and inequality determinants within a unified empirical framework to support regional development policy. The results show that the agriculture, forestry, and fisheries sector constitute the primary base sector in Southern West Java. Furthermore, road infrastructure and the Human Development Index are found to have a positive effect on regional inequality. In contrast, economic growth and population size have a negative effect, highlighting the importance of inclusive growth and equitable infrastructure development.