Local Superior Commodities, Regional Specializations and Regional Economic Contributions

Purpose – The purpose of was paper is to do a conceptual analysis of the determination of local superior commodities using the location quotient technique and an analysis of the contribution of superior products to the regional economy. The results of determining superior commodities are used to determine regional product specialization and its contribution to the regional economy. Local superior commodities are dynamic and selected based on the potential to increase regional income. Research design, data, and methodology - This study used location quotient techniques and regional economic analysis with annual data rocks, production data in the agriculture, plantation, fishery and forestry sectors. Local superior commodities are calculated to contribute to regional economists. Result – The findings obtained showed the location quotient technique can determine local superior commodities and local superior commodities contributed positively to the regional economy. The test results were carried out in Jember Regency, East Java Province, Indonesia. Conclusion – The ass well main commodities of Jember Regency are tobacco. Tobacco commodities contribute positively to the regional economy, they were not significantly due to affected by the low of commodity prices in harvest. The low prices indicate the strength of the weak bargaining position of farmers towards the market.