Published date:Feb 19 2025

Journal Title: KnE Social Sciences

Issue title: The International Conference on Economic and Sustainable Development (ICESIDE)

Pages:72 - 85

DOI: 10.18502/kss.v10i5.18100

Bondan Satriawandan.satriawan@trunojoyo.ac.idDepartment of Economics, Faculty of Economic and Business, Universitas Trunojoyo Madura

Slamet Joko UtomoDepartment of Economics, Faculty of Economic and Business, Universitas Trunojoyo Madura

Ayu Novita SariDepartment of Economics, Faculty of Economic and Business, Universitas Trunojoyo Madura

This study seeks to analyze the impact of the non-agricultural sector on economic growth in East Java over the last decade (2013-2023). Utilizing panel data regression analysis on 38 regencies and cities within East Java Province for the period of 2013-2023, the research identifies the leading economic sector for each district/city, distinguishing between the non-agricultural and agricultural sectors. The variables incorporated in this study include: (i) the leading economic sector of each district/city, (ii) the leading labor sector, (iii) the average years of schooling of the population, and (iv) the total labor force in each district/city. The findings indicate that districts/cities where the non-agricultural sector is dominant are more likely to experience higher rates of economic growth compared to those where agriculture constitutes the primary economic activity.

Keywords: non-agricultural sector, economic growth, East Java

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