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ABSTRACT:

A high economic growth in a region did not guarantee equitable prosperity. Yogyakarta Special Region (DIY) saw significant economic growth, but inequality problems persisted. This study sought to reduce inequality by identifying the growth center and the magnitude of the interaction between the growth center and the buffer areas of DIY Province so that development. It also examined the leading sectors of DIY's regencies and cities. This research utilized the Location Quotient (LQ) analysis method, shift-share analysis, overlay analysis, scalogram analysis, and gravity model analysis. The research findings indicated that each regency/city in DIY had a leading sector that grew faster, contributing to its regional economy and driving the development of other sectors. Different base sectors encouraged DIY regencies/cities to fill in each other's gaps. From 2020 to 2022, Sleman Regency was the growth center in the first hierarchy, and Yogyakarta City in the second. As a result, both regions had a role in encouraging the development of surrounding areas. On the other hand, the buffer area with the most significant interaction with the growth center was Bantul Regency, with an interaction value of 1,462,043,398 with Sleman Regency and 2,622,111,087 with Yogyakarta City. High interaction would enhance economic efficiency.

KEYWORDS:

inequality, leading sectors, growth centers, scalogram, gravity model.

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