Analysis of Leading Sectors and Poverty Mapping in the Mebidang Area of North Sumatra

Indonesia

Abstract

This study aims to identify leading sectors, analyze poverty conditions, and explain the relationship between the potential of leading sectors and poverty levels in the Mebidang area. The research method uses Location Quotient (LQ) analysis to determine the base sector, classify leading sectors into labor-intensive and capital-intensive categories, and comparative descriptive analysis to link regional economic structure with poverty variations. The poverty indicators used are the Headcount Index (P0), Poverty Gap Index (P1), and Poverty Severity Index (P2) based on data from the Central Statistics Agency (BPS). The results show that Medan City is dominated by capital-intensive sectors such as finance, real estate, and corporate services, while Binjai and Deli Serdang are more supported by labor-intensive sectors such as trade, transportation, construction, and educational services. Further analysis shows that labor-intensive sectors contribute more to poverty reduction through labor absorption, while capital-intensive sectors drive economic growth but have less significant impact on reducing the number of poor people. Thus, the development strategy of the Mebidang area needs to be directed at strengthening labor-intensive sectors without ignoring the role of capital-intensive sectors so that economic growth is inclusive and effective in reducing poverty.