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International Journal Of Horticulture, Agriculture And Food Science(IJHAF)

The Impact of Oil Palm Plantations on Economic Growth of Batanghari Regency

Saidin Nainggolan , Mirawati Yanita , Febtynarani Sidabutar


International Journal of Horticulture, Agriculture and Food science(IJHAF), Vol-6,Issue-4, July - August 2022, Pages 25-30, 10.22161/ijhaf.6.4.2

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Article Info: Received: 02 Jul 2022; Received in revised form: 25 Jul 2022; Accepted: 02 Aug 2022; Available online:08 Aug 2022

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This study aims to analyze the position and impact of oil palm plantations on economic growth in Batanghari Regency. This study uses time-series data for the 2010-2019 period which was collected from related agencies. The analysis method uses location quotient, multiplier effect, and shift-share analysis. The results showed that oil palm plantations are the basic sector in the economy of Batanghari Regency in terms of GDRP at Constant prices and employment (LQ > 1). The shift-share values from the aspects of GDRP at Constant prices, GDRP at Current Prices, and labor absorption indicate that oil palm plantations are a potential economic sector to be developed. The value of the multiplier effect generated by oil palm plantations is quite large from the aspect of GDRP at Constant prices of 35.53 and employment of 10.44.

Contribution, Quotient Location, Multiplier Effect, Shift-Share.

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