IMPACT OF
SPREAD EFFECT ON PUBLIC MARKET PLACE
�(LAMBARO ACEH BESAR)
Armalia1, Noer Fadhly2,
Cut Zukhrina Oktaviani3
Universitas Syiah Kuala, Banda Aceh, Indonesia
[email protected]1, [email protected]2,
[email protected]3
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ABSTRACT
Aceh Besar Regency is the primary access and entrance gate to the
provincial capital, directly adjacent to the city of Banda Aceh. This proximity
positions Aceh Besar as a buffer from the city. The strategic location and
position make Aceh Besar an opportune area for rapid growth and development.
Thus, developing these strategic areas will foster the emergence of growth
centers (Growth Poles). This research aims to determine and analyze the impact
of the spread effect on the public market between Aceh Besar Regency and Banda
Aceh City as a potential sector that can encourage economic growth and have a
spreading effect on the surrounding area. The analysis method employed in this
research is a quantitative approach utilizing descriptive analysis. The results
of the research show that the results of the gravity analysis of sub-districts
in Aceh Besar Regency and Banda Aceh City show that Want Jaya Sub-district as
the primary growth center has the greatest interaction value with Darul Imarah
Sub-district. The last sub-district is one of the sub-districts in Aceh Besar
Regency with an interaction value of 76,525,776,000. Furthermore, the largest
interaction values after Darul Imarah District are Krueng Barona Jaya District
and Montasik District with interaction values of 15,062,514,047 and
11,831,506,347 respectively.
Keyword: growth
pole, spread effect, proportional shift, lambaro market.
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Corresponding Author: Noer
Fadhly
E-mail: [email protected]
INTRODUCTION
Aceh Besar Regency, serving as the primary access and
entrance gate to the provincial capital, is directly adjacent to the city of
Banda Aceh. This adjacency positions Aceh Besar as a buffer from the city. The
Lambaro Market in the Ingin Jaya subdistrict holds the status of the central
market. Lambaro Market is a part of the activity center system within Aceh
Besar Regency, classified as a Local Activity Center and a Regional Service
Center.
The Lambaro Market is a strategic area that holds
significant influence over the economic development of Aceh Besar. The presence
of the Lambaro Market brings forth hopes for economic growth, with the
potential to augment the earnings of traders and cross-sectoral business
entities, including Micro, Small, and Medium Enterprises (MSMEs). Notably, the
existence of the Lambaro Market has contributed to the rise in the Gross
Regional Domestic Product (GRDP) of Aceh Besar Regency, calculated at constant
prices, from IDR 9,213,402.42 to IDR 10,261,585.10 from 2017 to 2021 (B.P.S.
Aceh Besar, 2023). This escalation in GRDP has subsequently propelled
improvements within the economic sector of Aceh Besar.
The Lambaro Market delivers a multiplier effect to the
local residents. These effects encompass the escalation in the value of land
and buildings, alongside growth within the culinary business sector, including
food stalls and coffee shops. Additionally, there has been an increase in the
number of trips generated by sellers and visitors. The movement phase aims to
determine the number of movements generated from each origin zone (Oi) and the
number of movements drawn towards each destination zone (Dd) within the study
area.
The problem identification is how the economic
interaction between Aceh Besar Regency and Banda Aceh City as a potential
sector so that it can encourage economic growth and create a spread effect for
the surrounding area.
METHOD
Polarization Theory
Development undertaken in one area has a consequential
impact on the surrounding regions. Growth centers give rise to two distinct
forms of influence: the spread effect and the backwash effect. The backwash
effect tends to channel growth toward a specific area with developmental
potential, while the spread effect encompasses a wide-ranging dispersion from
the growth center to its environs. As Myrdal (1957) noted, economic progress in
certain regions reduces the spread effect on neighboring areas, coupled with an
expansion of the backwash effect. Consequently, less developed areas experience
further underdevelopment, while already developed areas undergo greater
advancement.
Polarization
analysis identifies two primary types of regions: developed and underdeveloped.
These distinct categories hold reciprocal developmental influences over one
another. A spread effect emerges through their interconnection in cases of
extensive similarities between the two regions. Conversely, when the
resemblances between these regions are confined to a smaller scale, the
progress in developed areas can trigger a backwash effect on the surrounding
underdeveloped regions (Hirschman, 1958).
Shift Share Analysis
Wibisono (2019) states that a region characterized by
numerous sectors experiencing slow growth rates will subsequently contribute to
sluggish national growth. This phenomenon occurs due to the comparative
rapidity of growth in other regions. The shift-share analysis comprises three
core components: (a) National share: This facet gauges the alteration in a
region's economic structure driven by shifts within the broader national
economy. (b) Proportional shift: This parameter encapsulates the growth in gross
value added of a specific sector (i) juxtaposed with the total sectors' growth
at the national level. (c) Differential shift or competitive position: This
measure underscores the discrepancy in economic growth between the region and
the gross value added of the same sector at the national level. The employed
Shift Share Formula is as follows:
𝑃𝑟,𝑖,𝑡� = {(𝐸𝑁,𝑖,𝑡 /𝐸𝑁,𝑖,𝑡−𝑛 ) − (𝐸𝑁,𝑡 /𝐸𝑁,𝑡−𝑛 )} � 𝐸𝑟,𝑖,𝑡−𝑛
𝐷𝑟,𝑖,𝑡� = {𝐸𝑖,𝑟,𝑡�
− (𝐸𝑁,𝑖,𝑡 /𝐸𝑁,𝑖,𝑡−𝑛 )𝐸𝑟,𝑖,𝑡−𝑛}
Where N is
province, r is regency, E is total GRDP (million rupiahs), i is sector, t is
year, t-n is starting year, 𝑃𝑟,𝑖,𝑡 is
proportional shift (million rupiahs), and 𝐷𝑟,𝑖,𝑡 is
differential shift (million rupiahs).
Research Variables
Table 1. Distance from
Village in Meuraxa District to Central Business District Point
|
Variable |
Sub Variables |
Indicator |
|
|
Independent Variable (X) |
|||
|
Potential Sector |
Province dan Regency |
Proportional Shift |
|
|
Differential Shift |
|||
|
Economic Interaction Area |
Economic interaction between regencies |
Total Population |
|
|
Absolute distance between Region 1 and others |
|||
|
Variable |
Sub Variables |
Indicator |
|
|
Dependent Variable (Y and Z) |
|||
|
Growth Pole |
Potential Sectors and Economic Interaction Areas |
Proportional Shift |
|
|
Differential Shift |
|||
|
Total Population |
|||
|
Absolute distance between Region 1 and others |
|||
|
Availability of Facility and Infrastructure |
|||
|
Economic Growth Structure Condition |
|||
Source: Analysis Results 2022
Data Analysis
The analysis method employed in this research is a quantitative approach
utilizing descriptive analysis. The primary goal of this study is twofold:
first, to scrutinize the sectors influencing the generation of attraction or
Origin-Destination (O-D) flows at Pasar Induk Lambaro. This objective is
pursued by gathering data from the B.P.S. (Central Bureau of Statistics) of
Aceh Besar, conducting on-site surveys, and constructing questionnaires for O-D
analysis along Lambaro Central Market Road within Aceh Besar Regency. The
second objective involves identifying the pivotal sectors harboring the
potential to serve as economic drivers within Aceh Besar Regency. This endeavor
is addressed by implementing a Shift Share (S.S.) analysis. Lastly, the third
objective seeks to discern the economic interplay between Aceh Besar Regency
and Banda Aceh City, a sector with substantial potential. This interaction is
envisaged as a catalyst for economic growth and the creation of a widespread
effect across the surrounding areas. The achievement of this goal rests upon
conducting a gravity analysis.
RESULTS AND DISCUSSION
Shift Share Analysis
The Shift Share (S.S.) analysis entails a comparison of
the divergence in growth rates across various sectors within the Lambaro central
market in contrast to the reference area, with a detailed exploration of the
factors contributing to changes in several variables. In the case of the Aceh
Besar Regency, the Shift Share analysis was conducted using the Gross Regional
Domestic Product (GRDP) data, adjusted for constant prices in 2017 and 2021.
Aceh Province served as the benchmark region for this analysis.
It is noteworthy that the Proportional Shift values
exhibit seven sectors with negative figures, specifically: (1) Agriculture,
Forestry, and Fisheries; (2) Manufacturing Industry; (3) Wholesale and Retail
Trade; Car and Motorcycle Repair; (4) Transportation and Warehousing; (5)
Accommodation and Drink and Food Provision; (6) Financial and Insurance
Services; and (7) Corporate Services. These seven sectors within the region are
experiencing slower or declining growth rates. This trend arises due to the external
influence of the accommodation and food services sector, impacting sector (i)
in the GRDP of Aceh Besar Regency.
On the other hand, the Proportional Shift values with
positive magnitudes are attributed to ten sectors: (1) Mining and Quarrying;
(2) Electricity and Gas Procurement; (3) Water Procurement, Waste Management,
Waste and Recycling; (4) Construction; (5) Information and Communication; (6)
Real Estate; (7) Government Administration, Defense, and Compulsory Social
Security; (8) Educational Services; (9) Health Services and Social Activities;
and (10) Other Services. These ten sectors experience swifter growth within the
region, and their influence on regency revenue is affirmative. This pattern
indicates that the revenue of Aceh Besar Regency is expected to surpass the
growth rate of Aceh Province, fostering a positive growth trajectory.
The Differential Shift reveals negative values across
seven sectors: (1) Agriculture, Forestry, and Fisheries; (2) Mining and
Quarrying; (3) Electricity and Gas Procurement; (4) Water Procurement, Waste
Management, Waste and Recycling; (5) Transportation and Warehousing; (6)
Financial and Insurance Services; and (7) Corporate Services. This indicates
that these sectors exhibit lower profitability within the internal development
of Aceh Besar's Regional Domestic Product. Conversely, positive Proportional
Shift figures encompass ten sectors: (1) Manufacturing Industry; (2)
Construction; (3) Wholesale and Retail Trade; Repair of Cars and Motorcycles;
(4) Provision of Accommodation and Food Services; (5) Information and
Communication; (6) Real Estate; (7) Government Administration, Defense, and
Compulsory Social Security; (8) Educational Services; (9) Health Services and
Social Activities; and (10) Other Services. These ten sectors are both
profitable and possess local advantages and competitiveness, thus contributing
to the development of Aceh Besar's Regional Domestic Product.
Gravity Analysis
Gravity analysis shows that as the initial growth center,
Ingin Jaya Sub-district holds the highest interaction value with Darul Imarah
Sub-district, boasting an interaction value of 76.525.776,00. Additionally,
notable interaction values are observed in the subsequent sub-districts, Krueng
Barona Jaya and Montasik, recording interaction values of 15.062.514,047 and
11.831.506,347, respectively. These findings highlight the substantial economic
interaction among the three sub-districts of Aceh Besar Regency compared to
others. Notably, this interaction is directed toward the Ingin Jaya
Sub-district, where the Lambaro central market is situated. Notably, the most
robust interaction value is observed with the Darul Imarah Sub-district.
CONCLUSION
Based on the results of the shift-share
analysis utilizing GRDP data at constant prices from 2017 to 2021, the
following conclusion can be drawn: both the proportional shift and differential
shift indicators exhibit negative values for seven sectors each. These seven
sectors experience a slower or declining growth rate within the region,
demonstrating lesser profitability in the internal development of Aceh Besar's
Regional Domestic Product. Conversely, among the positive proportional shift
and differential shift values, a total of ten sectors emerges. These ten
sectors exhibit a swifter and more profitable growth rate within the region.
Moreover, they possess local advantages and competitiveness in fostering the
development of Aceh Besar's Regional Domestic Product.
Based on the results of the gravity
analysis, utilizing Ingin Jaya Sub-district as the focal point due to its role
as the location of Lambaro central market, the sub-district with the highest
interaction value is Darul Imarah Sub-district. Following that, the Krueng
Barona Jaya Sub-district and Montasik Sub-district are notable, with respective
interaction values of 76,525,776.000, 15,062,514.047, and 11,831,506.347.
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