THE ROLE OF BANKING CREDIT IN DEVELOPMENT LEADING SECTORS AT SOUTH SULAWESI PROVINCE
Abd. Rahman Razak
Jurusan Manajemen Fakultas Ekonomi Universitas Hasanuddin
Jl. Perintis Kemerdekaan KM. 10, Makassar 90245
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Abd. Rahman Razak: Tlp./Fax. + 62 411 587 218
E-mail : firstname.lastname@example.org
This study aimed to measure how far the role of bank loans extended to support the development of leading sectors in South Sulawesi Province during the period 2003 – 2007 as the period of observation. Data used were secondary data analyzed by using descriptive statistical analysis tools and Location Quotient methods (LQ). To perform measurements, the results of LQ calculation each economic leading sector of this region compared with the value of the share or the average percentage distribution of bank loans extended to every economic sector. Results showed that there were 5 (five) sectors of the economy in South Sulawesi Province that had values greater than 1 (one), so that the most valuable sector in the economy of this region during the observation period, namely agriculture, mining and quarrying, electricity, gas and water supply, transport and communications sector; and the services sector. The role of bank credit in the development of leading sectors of this region had not been effective because there was still a fairly large gap between the value of its LQ-winning each of the sectors with the value of the average percentage of credit extended to the leading sectors during the period of observation.
Key words: credit banking, competitive sectors.