Jurnal Investasi Islam
Vol. 11 No. 1 (2026): Jurnal Investasi Islam (JII)

Sectoral Economic Dynamics in South Tapanuli Regency: Evidence from LQ and Shift Share Approaches

Raihan Bugis (Universitas Islam Negeri Sumatera Utara)
Isnaini Harahap (Universitas Islam Negeri Sumatera Utara)
Purnama Ramadani Silalahi (Universitas Islam Negeri Sumatera Utara)



Article Info

Publish Date
27 May 2026

Abstract

This study analyzes leading and potential economic sectors in South Tapanuli Regency, North Sumatra, in the post-pandemic period using the Location Quotient (LQ) and Shift Share methods based on Gross Regional Domestic Product (GRDP) at constant prices from 2021–2024. Unlike previous studies that primarily focus on descriptive sectoral contributions, this research integrates comparative and competitive advantage analyses to provide a more comprehensive understanding of regional economic dynamics. The LQ analysis identifies three base sectors: Agriculture, Forestry, and Fisheries (average LQ = 1.8222); Mining and Quarrying (average LQ = 8.6937); and Public Administration, Defence, and Compulsory Social Security (average LQ = 1.7817). Meanwhile, the Shift Share analysis reveals that eleven sectors possess positive competitive advantages (Cij > 0). The combined results classify two sectors as leading sectors, one sector as potential, nine sectors as developing, and five sectors as lagging. However, the Public Administration sector should be interpreted as an administratively dominant sector rather than a productive market-driven source of regional competitiveness. The findings indicate that post-pandemic economic strengthening in South Tapanuli should prioritize productive base sectors, enhance the competitiveness of developing sectors, and encourage regional economic diversification. Theoretically, this study demonstrates the relevance of integrating LQ and Shift Share approaches in analyzing regional sectoral transformation. Practically, the results provide evidence-based insights for local governments in designing policies related to resource allocation, productive sector development, and regional competitiveness enhancement.

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Journal Info

Abbrev

jii

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Investasi Islam adalah jurnal akademis yang diterbitkan dua kali dalam setahun oleh Fakultas Ekonomi dan Bisnis Islam, Institut Agama Islam Negeri Langsa. Jurnal Investasi Islam bertujuan untuk menjadi bagian dalam kemajuan ilmu pengetahuan di bidang ekonomi, keuangan dan investasi islam ...