SWL-Economic

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The Using of Normalized Location Quotient (LQn) Method in Order to Determine the Leading Commodities in Regional Economic Activities
(2014-01-29) Kornita, Sri Endang
This paper is interested to study the Location Quotients (LQ) such as an index to measure of overspecialization or underspecialization from certain sector in the regional economy. LQ is often used to determine the leading sector in regional economic activities as leading commodities, but LQ only used secondary data published. Other methods to measure the leading commodities in regional economic activities are Comparative Exponential Method (CEM) and Borda Method (BM). CEM is used to determine alternative decision priority by using some criterial, while Borda method is used to establish priority rank and also used to determine the leading commodities in regional economic activities. Both of CEM and Borda method use primary data from key reports. Finally, this paper contributes to give a general idea about determining method for the leading commodities in regional economic activities by combining both methods above. The result of CEM and Borda Method combining to normalized Location Quotient (LQn). The valid analysis to determine of the leading commodities in regional economic activities by using two types of data, primary data is used by CEM and the secondary data is used by BM to the normalized Location Quotient (LQn) respectively.