Regional Economic Transformation and the Role of the Mining Sector in Restructuring Inter-Sectoral Competitiveness in the National Mining Corridor of Konawe, Indonesia

Muh. Tun Syahlan Saleh Saranani, Rostin Rostin, Fajar Saranani, Lapipi Lapipi

Abstract


Economic transformation in natural resource-based areas, such as the mining and quarrying sector, often presents complex structural and spatial challenges. In Konawe Regency, the dominance of this sector has become the main characteristic of the regional economic structure, but in the long term it shows symptoms of extractive dependence that weakens sectoral competitiveness. This study analyzes the dynamics of sectoral competitiveness and its spatial implications for the direction of regional development in Konawe Regency during the period 2010–2024. The Shift Share Analysis (SSA) approach is used with a focus on the competitive effect (Cij) component to evaluate local sectoral advantages longitudinally. The results show that the economic structure of Konawe has shifted from the dominance of the primary sector to the secondary sector, especially the processing industry which showed a significant spike in Cij in 2019–2024. In contrast, the mining and quarrying sector, although nominally dominant, experienced a sharp decline in competitiveness, indicating symptoms of extractive dependence and weak spatial-sectoral integration. These findings also indicate the emergence of spatial inequality in the distribution of growth, especially between industrial zones and rural areas. The proposed policy implications include the need for evidence-based economic diversification strategies, strengthening inter-sectoral connectivity, and repositioning the role of mining in regional development systems. This study emphasizes the importance of a spatial-sectoral approach in regional planning and development geography, and suggests the integration of SSA with spatial and institutional methods in further research to produce more inclusive, resilient, and contextual development directions.

Keywords: regional restructuring, industrial linkage, spatial development, regional disparity, Shift–Share Analysis

© 2025 Serbian Geographical Society, Belgrade, Serbia.

This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Serbia.


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