Manufacturing Sector Competitive Advantage: Case Study of South Sumatra Province using the Dynamic Shift Share Method

Sony Tian  Dhora; Nairobi; Arivina Ratih  Taher; Toto  Gunarto; I Wayan  Suparta

Authors

Sony Tian Dhora Universitas Lampung, Indonesia
Nairobi Universitas Lampung, Indonesia
Arivina Ratih Taher Universitas Lampung, Indonesia
Toto Gunarto Universitas Lampung, Indonesia
I Wayan Suparta Universitas Lampung, Indonesia

Keywords:

Processing Industry, Dynamic Shift Share Analysis, South Sumatra.

Abstract

The manufacturing industry sector is one of the sectors that has become a priority and has become a reference for other sectors in the Province of South Sumatra. The manufacturing industry sector consists of 16 sub-sectors. This study aims to analyze the competitive advantage of the manufacturing sub-sector in South Sumatra Province in 2017-2021. The method used in this study uses dynamic shift share analysis. The results of this study obtained ten processing industry sub-sectors that have competitive advantages, namely coal and oil refining; food and Drink; textiles and apparel; leather goods from leather and footwear; paper and articles of paper for printing and reproduction of recorded media; chemical, pharmaceutical and traditional medicine; rubber, goods made of rubber and plastics; non-metal mineral goods; base metal; as well as furniture, and the remaining six sub-sectors do not have a competitive advantage. This competitive advantage assessment can be seen from the results of dynamic shift share analysis calculations which have positive and negative values. This means that if the value of competitive advantage is positive, it can be said that the sub-sector has a competitive advantage, while those that have a negative value then the sub-sector does not have a competitive advantage so that a development strategy is needed.

References

Badan Pusat Statistik. (2021). Direktori Perusahaan Besar dan Sedang Provinsi Sumatera Selatan. Central Bureau of Statistics: Sumatera Selatan.

Badan Pusat Statistik. (2021). Perkembangan Produksi Industri Manufaktur Provinsi Sumatera Selatan. Central Bureau of Statistics: Sumatera Selatan.

Badan Pusat Statistik. (2021). Provinsi Sumatera Selatan dalam Angka Tahun 2021. Central Bureau of Statistics: Sumatera Selatan.

Balla, N, V. (2020). Evaluating of Competitive Position of Port of Doula in Central Africa Regional Ports Market Conduct Using the SSA. Open Journal of Applied Sciences, 10, 503-519.

Cieslak, I., Pawlewicz, K., and A. Pawlewicz. (2019). Sustainable Development in Polish Regions : a Shift-Share Analysis. Pol. J. Environ. Stud, 28(2), 565-575.

Dekiawan, H., & Asmarawati, B. (2017). Pendekatan Model Shift-Share Spasial Dinamis dalam Penentuan Sektor Ekonomi Kompetitif. Forum Keuangan dan Bisnis Indonesia (FKBI), 6, 389-410.

Dhora, ST, et al. (2022). Specialization and Competitive Advantages of Leading Processing Industry in South Sumatra. Jurnal Ekonomi Pembangunan, 20(1), 53-66.

Gravitiani, E. (2006). Analisis Shift-Share Dinamik pada Perekonomian Kota Yogyakarta. JESP, 7(1), 35-48.

Goschin, Z. (2014). Regional Growth in Romania after Its Accession to EU: A Shift-Share Analysis Approach. Procedia Economics and Finance, 15, 169-175.

Hamzah, H. (2020). Analisis Sub Sektor Industri Pengolahan Unggulan di Provinsi Kepulauan Bangka Belitung. Sorot. 15(2), 75-85.

Hassan, M., Rashid, Z., & Hamid, K. (2011). East Coast Economic Region from ThePerspective of Shift-Share Analysis. International Journal of Business and Society, 12(1), 79-88.

Herath, J., Schaeffer, P., and T. Gebremedhin. (2013). Employment Change in LDs of West Virginia: A Dynamic Spatial Shift-Share Analysis. American Journal of Rural Development, 1(5), 99-105.

Hu, C. (2019). Regional Industrial Development in a Dual-Core Industry Space in China: The Role of the Missing Service. Habitat International, 94.

Indrawati, L, R., & Sugiharti, R. (2018). Disparities Analysis of Employment - A Dynamic Shift Share Approached. International Conference on Economics, Business and Economic Education, 2018, 680-689.

Isventina., Nuryartono, N., & Hutagaol, M. (2015). Analisis Daya Saing Sektor Industri Prioritas Indonesia dalam Menghadapi Pasar Asean. Jurnal Ekonomi dan Kebijakan Pembangunan. 4(1), 71-93.

Kalensang, G., Tatuh, J., and W. Rotinsulu. (2012). Study of Comparative Advantage and Competitiveness Siau Island District Taguladang Biaro Post Autonomy. Samratulangi University Electronic Journal, 1(1).

Khusaini, M. (2015). A Shift-share Analysis on Regional Competitiveness - A Case of Banyuwangi District, East Java, Indonesia. Procedia - Social and Behaviour Sciences, 211, 738-744.

Kleynhans, E., and Sekhobela, M, J. (2011). Journal of Economic and Financial Sciences, 4(1), 9-30.

Labib, S.M., Bhuiya, MD., and Z. Rahaman. (2013). Methodological Analysis of Regional Economy and Employment: Extended Shift-Share for Dhaka Disctrict. International Journal of Business, Social and Scientific Research, 1(1), 44-52.

Pambudi, A., Nuraini, I., & Arifin, Z. (2022). Analisis Ketimpangan Ekonomi dan Sektor Ekonomi Unggulan di Kabupaten Muaro Jambi Provinsi Jambi. Jurnal Ilmu Ekonomi, 6(1), 14-25.

Rosnawintang, Suwandi & Asizah, N. (2015). Analisis Daya Saing dan Strategi Industri Makanan dan Minuman Indonesia di Era Masyarakat Ekonomi ASEAN. Jurnal Ekonomi Pembangunan (JEP) UHO, 5(2), 1-20.

Prasetia, L. A., Widayaningsih, N., & Saraswati, E. (2011). Keunggulan dan Spesialisasi Ekonomi Wilayah di Kabupaten Wonosobo Tahun 2000-2009 (Pendekatan Model Shift-Share Esteban Marquillas). Jurnal Eko-Regional, 6(2), 91–96.

Santoso, E., B. (2009). The Competitiveness of Major Cities in Indonesia. Paper Presented at The National Seminar on Urban and Regional Planning, ITS, October 2009.

Saputri, I., & Boedi, A. (2018). Analisis Sektor Ekonomi Unggulan pada Kabupaten/Kota di Provinsi Sumatera Selatan. Jurnal Ilmu Ekonomi, 2(2), 217-229.

Shuquan, H. (2019). Competition among China and ASEAN-5 in the US Market: A New Extension to Shift-Share Analysis. SocioEconomic Challenges, 3(4), 129-138.

Wibisono, E., Amir, A., & Zulfanetti, Z. (2019). Keunggulan Komparatif dan Kompetitif Sektor Industri Pengolahan di Provinsi Jambi. Journal of Regional and Rural Development Planning. 3(2), 105-116.

Zulkarnain, Z., et al. (2021). Daya Saing Komoditas Ubi Kayu dengan Internalisasi Biaya Transaksi di Kabupaten Lampung Tengah, Lampung, Indonesia. Agro Bali: Agricultural Journal, 4(2), 230-245.