Analysis of the Contribution of the Construction Sector to Economic Growth in Tanimbar Islands Regency

Abstract

Identifying the role of the construction sector in Tanimbar Islands Regency is crucial for the region's economic development. This study aims to determine the partial impact of the construction sector on economic growth in Tanimbar Islands Regency. It employs a quantitative research design utilizing contribution analysis, simple linear regression analysis, and Location Quotient (LQ) analysis. The data used consist of the Gross Regional Domestic Product (GRDP) of Tanimbar Islands Regency at constant 2010 prices by economic sector for the period 2011–2024, with the GRDP of Maluku Province (at constant 2010 prices by economic sector for the same period) serving as a benchmark. Simple linear regression results indicate that, individually, the construction sector has a t-statistic of -1.726 with a probability value of 0.110 (> 0.05). This suggests that the construction sector does not have a significant impact on the regional economic growth rate. Although physical infrastructure development continues, the resulting economic multiplier effect has not been optimal. This situation is attributed to the long-term nature of construction projects and their uneven distribution across the archipelago. Conversely, LQ analysis results show values consistently above 1 throughout the 14-year observation period, with no single year falling below the threshold. These Location Quotient (LQ) findings confirm that the construction sector in Tanimbar Islands Regency is definitively a base sector capable of meeting domestic demand and holds the potential for export beyond the region. The local government is expected to evaluate the equitable distribution of infrastructure development so that the contribution of this base sector can be transformed into a tangible stimulus that accelerates macroeconomic growth.