Jurnal Manajemen - Teori Basis Ekonomi (Economic Base Theory)

This basic economic theory was proposed by Harry W. Richardson (1973), who argued that the main determinant of a region's economic growth is directly related to the demand for goods and services outside the region (Arsyad 1999). The following statement will show that the growth of industries that use local resources, including labor and raw materials for export, will create prosperity in the region and employment opportunities (job creation). This assumption assumes that a region will have a major sector if the region wins the competition in the same sector as the other regions.
to be able to produce exports (Suyatno 2000: 146).
There is an economic theory as a theory that tries to implement regional changes in the relationship between sectors contained in regional companies. The pale, simple, and well-known theory is the economic basis theory. According to Glasson (1990: 63-64), the basic concept is based on the division of the economy into two sectors, namely the economy:

1) Essential sectors are sectors that export goods and services to places beyond the economic borders of the interested parties, since people coming from outside the economic borders have access to goods and services.
2) Non-basic sectors are sectors that produce goods needed by people living within the economic boundaries of the community. Sectors do not export goods. Their scope and market is mostly local.
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The regional economy, divided into two sectors, has a cause and effect relationship in which both then form the basis for completing the basic theory of economics. An increase in a region's basic activities will increase the flow of income to that region and, as a result, increase demand for the goods and services produced, thereby increasing the volume of non-essential activities. On the other hand, less activity will reduce demand for non-core products, which will reduce sales in the relevant area. Therefore, these activities act as key players.

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