Salam (Islamic Economics Journal)
Vol. 6 No. 1 (2025): June 2025

Determinasi Aglomerasi Industri di Sumatera Utara: Pendekatan Hoover Balassa Index Periode 2018–2023

Prasetya Kumara, Bima (Unknown)
Azansyah, Azansyah (Unknown)
Apriyanti, Cikit (Unknown)



Article Info

Publish Date
20 Jul 2025

Abstract

This study aims to measure the level of agglomeration of large and medium-sized industries in North Sumatra Province using the Hoover Balassa Index and to identify the factors that influence it. The data used is panel data across regions for the period 2018–2023. The index calculation results reveal varying levels of industrial concentration across regions, ranging from very strong to those without comparative advantages. Regression analysis using a fixed effect approach shows that road length has a significant effect on industrial agglomeration, while industrial value added and the Human Development Index (HDI) do not have a significant effect. These findings indicate that infrastructure development, particularly roads, plays an important role in promoting the concentration and growth of industrial zones in North Sumatra Province.

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Journal Info

Abbrev

salam

Publisher

Subject

Economics, Econometrics & Finance

Description

SALAM is a Journal of Islamic Economics and Business and a biannual journal published by Faculty of Islamic Economics and Business at UIN Raden Intan Lampung - Indonesia. SALAM focused on economic development research. Scope of SALAM are Economic Development, Economic Growth, Islamic Economics, ...