Proceedings of the 4th International Conference on Innovation in Education, Science and Culture, ICIESC 2022, 11 October 2022, Medan, Indonesia

Research Article

Analysis of Leading Commodities on The Sumatra Island

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  • @INPROCEEDINGS{10.4108/eai.11-10-2022.2325297,
        author={Ainul  Mardiyah and Fitrawaty  Fitrawaty and Munajat  Munajat},
        title={ Analysis of Leading Commodities on The Sumatra Island },
        proceedings={Proceedings of the 4th International Conference on Innovation in Education, Science and Culture, ICIESC 2022, 11 October 2022, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={ICIESC},
        year={2022},
        month={12},
        keywords={pdb sector pdrb lq rca},
        doi={10.4108/eai.11-10-2022.2325297}
    }
    
  • Ainul Mardiyah
    Fitrawaty Fitrawaty
    Munajat Munajat
    Year: 2022
    Analysis of Leading Commodities on The Sumatra Island
    ICIESC
    EAI
    DOI: 10.4108/eai.11-10-2022.2325297
Ainul Mardiyah1,*, Fitrawaty Fitrawaty1, Munajat Munajat1
  • 1: State University of Medan
*Contact email: 18ainul@gmail.com

Abstract

Commodity identification in each province is required so that business sector development is more efficient, adds value, and produces optimal results. The purpose of this research is to examine the leading commodities and provinces on the Sumatra Island that have a comparative advantage in the agriculture, forestry, and fishery sectors. PDB, PDRB, and Sub-Sector PDRB in 2015-2021 data from agencies such as BPS, BI, and Bappenas are used, with the Location Quotient (LQ) and Revealed Comparative Advantage (RCA) methods. The results show that all of the data passed the classical assumption test. The highest LQ value for each province on the Sumatra Island differs, but agriculture, forestry, and fisheries are the basic sectors in all provinces. The RCA value of the agriculture, forestry, and fishery sectors demonstrates that all provinces on the Sumatra Island have high competitiveness because they can meet their own regional needs and even export outside the region.