Mining and Excavation Sector

Oct 13, 2025 by windailys.com 78 views

Introduction

Economic development in South Solok Regency is a crucial aspect of improving the welfare of the community. The region's economic growth has a significant impact on the leading sectors, which in turn affect the overall development of the area. This study aims to identify the direct effect of economic growth on leading sectors in South Solok Regency and the role of domestic investment as a mediation variable in that relationship. Through the explanatory research approach, this study explores phenomena that have not been widely studied before, using secondary data obtained from the official website of the Central Statistics Agency (BPS) of South Solok Regency and the Realization Report of Investment from the local Investment and One Stop Investment Service (DPMPTSP).

Methodology

The data analyzed in this study included 107 data points in the form of a monthly time series during the 2012-2020 period. The data was processed using SPSS version 25 software. The Location Quotient (LQ) was calculated to determine the leading sectors in South Solok Regency. The LQ is a statistical method used to identify the relative importance of a sector in a region compared to the national average.

Results

The results of the study showed that there were several leading sectors in South Solok Regency from the calculation of Location Quotient (LQ) between 2012 to 2020, namely the agricultural, forestry and fisheries sectors; mining and excavation sector; construction sector; and the large and retail trade sector. Economic growth has a positive and significant influence on the agricultural, forestry and fisheries sectors, which shows that economic progress in the area can increase the productivity and income of farmers and fishermen.

Agricultural, Forestry and Fisheries Sectors

Economic growth has a positive and significant influence on the agricultural, forestry and fisheries sectors. This is because economic progress in the area can increase the productivity and income of farmers and fishermen. The agricultural sector is a significant contributor to the regional economy, and economic growth can lead to an increase in agricultural production and productivity. The forestry and fisheries sectors also benefit from economic growth, as it can lead to an increase in the demand for forest products and fishery products.

Mining and Excavation Sector

However, economic growth has a negative and significant influence on the mining and excavation sector. This can be interpreted as a challenge in optimizing natural resources without damaging the environment. The mining and excavation sector is a significant contributor to the regional economy, but it also has a negative impact on the environment. Economic growth can lead to an increase in the demand for natural resources, which can result in the degradation of the environment.

Construction Sector

Economic growth also shows a significant positive effect on the construction sector. This sector has the potential to be one of the drivers of investment and employment, thus contributing to regional economic growth. The construction sector is a significant contributor to the regional economy, and economic growth can lead to an increase in construction activities. This can result in an increase in employment opportunities and investment in the region.

Large and Retail Trade Sector

However, economic growth has a negative impact on the large and retail trade sector. This may be caused by a shift in public consumption patterns or the impact of government policies that have an impact on purchasing power. The large and retail trade sector is a significant contributor to the regional economy, but it is also affected by changes in public consumption patterns and government policies.

Mediation Role of Domestic Investment

Domestic investment acts as a mediation variable in several sectors. In the agricultural, forestry and fisheries sectors, domestic investment is proven to strengthen the effect of economic growth. On the other hand, investment does not show the role of mediation in the mining and excavation sectors. Meanwhile, in the construction sector, domestic investment can strengthen the positive impact of economic growth, while in the large and retail trade sector, investment is unable to become a mediator.

Conclusion

Overall, this research provides an important insight into the dynamics of economic growth in South Solok Regency and its influence on leading sectors. This discovery can be a reference for policy makers in designing more effective and sustainable development strategies, by utilizing investment potential to encourage sectors that support local economic growth. The findings of this study can also be used to inform investment decisions and policy-making in the region.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should prioritize the development of the agricultural, forestry and fisheries sectors, as they have a positive impact on the regional economy.
The government should also prioritize the development of the construction sector, as it has the potential to be one of the drivers of investment and employment.
The government should implement policies to mitigate the negative impact of economic growth on the mining and excavation sector, such as environmental regulations and sustainable mining practices.
The government should also implement policies to mitigate the negative impact of economic growth on the large and retail trade sector, such as tax incentives and investment in infrastructure.

Limitations

This study has several limitations, including:

The data used in this study is limited to secondary data obtained from the official website of the Central Statistics Agency (BPS) of South Solok Regency and the Realization Report of Investment from the local Investment and One Stop Investment Service (DPMPTSP).
The study only analyzed the data from 2012 to 2020, which may not be representative of the current economic situation in the region.
The study only focused on the leading sectors in South Solok Regency, and did not analyze other sectors that may also be affected by economic growth.

Future Research Directions

Future research directions include:

Conducting a more in-depth analysis of the leading sectors in South Solok Regency, including the agricultural, forestry and fisheries sectors, mining and excavation sector, construction sector, and large and retail trade sector.
Analyzing the impact of economic growth on other sectors in the region, such as the manufacturing sector and the service sector.
Conducting a case study of a specific sector or industry in South Solok Regency to gain a deeper understanding of the dynamics of economic growth in the region.

Conclusion

In conclusion, this study provides an important insight into the dynamics of economic growth in South Solok Regency and its influence on leading sectors. The findings of this study can be used to inform investment decisions and policy-making in the region. The study also highlights the importance of domestic investment as a mediation variable in several sectors. Future research directions include conducting a more in-depth analysis of the leading sectors in South Solok Regency and analyzing the impact of economic growth on other sectors in the region.

Q1: What is the main focus of this study?

A1: The main focus of this study is to identify the direct effect of economic growth on leading sectors in South Solok Regency and the role of domestic investment as a mediation variable in that relationship.

Q2: What is the methodology used in this study?

A2: The data analyzed in this study included 107 data points in the form of a monthly time series during the 2012-2020 period. The data was processed using SPSS version 25 software. The Location Quotient (LQ) was calculated to determine the leading sectors in South Solok Regency.

Q3: What are the leading sectors in South Solok Regency?

A3: The leading sectors in South Solok Regency from the calculation of Location Quotient (LQ) between 2012 to 2020 are the agricultural, forestry and fisheries sectors; mining and excavation sector; construction sector; and the large and retail trade sector.

Q4: How does economic growth affect the agricultural, forestry and fisheries sectors?

A4: Economic growth has a positive and significant influence on the agricultural, forestry and fisheries sectors, which shows that economic progress in the area can increase the productivity and income of farmers and fishermen.

Q5: How does economic growth affect the mining and excavation sector?

A5: Economic growth has a negative and significant influence on the mining and excavation sector, which can be interpreted as a challenge in optimizing natural resources without damaging the environment.

Q6: How does economic growth affect the construction sector?

A6: Economic growth also shows a significant positive effect on the construction sector. This sector has the potential to be one of the drivers of investment and employment, thus contributing to regional economic growth.

Q7: How does economic growth affect the large and retail trade sector?

A7: Economic growth has a negative impact on the large and retail trade sector, which may be caused by a shift in public consumption patterns or the impact of government policies that have an impact on purchasing power.

Q8: What is the role of domestic investment as a mediation variable in this study?

A8: Domestic investment acts as a mediation variable in several sectors. In the agricultural, forestry and fisheries sectors, domestic investment is proven to strengthen the effect of economic growth. On the other hand, investment does not show the role of mediation in the mining and excavation sectors. Meanwhile, in the construction sector, domestic investment can strengthen the positive impact of economic growth, while in the large and retail trade sector, investment is unable to become a mediator.

Q9: What are the implications of this study for policy makers?

A9: The findings of this study can be a reference for policy makers in designing more effective and sustainable development strategies, by utilizing investment potential to encourage sectors that support local economic growth.

Q10: What are the limitations of this study?

A10: This study has several limitations, including the data used in this study is limited to secondary data obtained from the official website of the Central Statistics Agency (BPS) of South Solok Regency and the Realization Report of Investment from the local Investment and One Stop Investment Service (DPMPTSP). The study only analyzed the data from 2012 to 2020, which may not be representative of the current economic situation in the region. The study only focused on the leading sectors in South Solok Regency, and did not analyze other sectors that may also be affected by economic growth.

Q11: What are the future research directions?

A11: Future research directions include conducting a more in-depth analysis of the leading sectors in South Solok Regency, including the agricultural, forestry and fisheries sectors, mining and excavation sector, construction sector, and large and retail trade sector. Analyzing the impact of economic growth on other sectors in the region, such as the manufacturing sector and the service sector. Conducting a case study of a specific sector or industry in South Solok Regency to gain a deeper understanding of the dynamics of economic growth in the region.

Q12: What are the conclusions of this study?

A12: In conclusion, this study provides an important insight into the dynamics of economic growth in South Solok Regency and its influence on leading sectors. The findings of this study can be used to inform investment decisions and policy-making in the region. The study also highlights the importance of domestic investment as a mediation variable in several sectors.