Jurnal Ilmu Ekonomi dan Pembangunan
Vol 26, No 1 (2026): Jurnal Ilmu Ekonomi dan Pembangunan

CURSE OR BLESSING: ECONOMIC DIVERSIFICATION AMIDST NATURAL RESOURCE DEPENDENCY IN CENTRAL SULAWESI

Talahatu, Marselius Fransiskus (Unknown)
Holiludin, Holiludin (Unknown)
Dzulfikar, Rizka (Unknown)



Article Info

Publish Date
05 May 2026

Abstract

This study examines the economic structure and structural transformation in 13 regencies/cities in Central Sulawesi Province during the 2013–2023 period. Its primary objective is to evaluate whether the region’s mineral wealth functions as a “blessing” or a “curse” by analyzing the readiness for economic diversification. This study employs a quantitative approach integrating Klassen’s Typology, the Natural Resource Dependency Index (NRDI), the Location Quotient (LQ), and Shift-Share Analysis (SSA-DS). The findings reveal that Morowali and North Morowali Regencies fall into Quadrant I (Advanced and Fast-Growing) but exhibit extreme dependency, with NRDI values exceeding 50. In Morowali, the manufacturing sector serves as the dominant base (LQ=1.90) with high local competitive advantage (DS=72.60), driven by nickel downstream processing. Conversely, North Morowali exhibits a resource paradox where the mining sector is the base sector (LQ=2.51) yet lacks comparative advantage (DS=−2.23), indicating a high risk of the resource curse. To transform natural wealth into a sustainable blessing, Central Sulawesi must prioritize strategic diversification into non-extractive sectors, such as the processing industry (DS=32.26 in North Morowali) and the service sector, supported by institutional reforms and investment in human capital.

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Journal Info

Abbrev

jiep

Publisher

Subject

Humanities Economics, Econometrics & Finance Social Sciences

Description

The Jurnal Ilmu Ekonomi dan Pembangunan (JIEP) invites papers on a wide range of topics, including the following : Economic Theories and Methodologies Econometric Finance and Monetary Economy Review of Government Policy and Macroeconomic Regional Economy Globalization and Localization Approach to ...