Potensi Aglomerasi Industri Kecil dan Pertumbuhan Ekonomi di Provinsi Sumatera Selatan

The study of potential agglomeration and its relevance to economic growth become interesting to discuss. The agglomeration of small industries in South Sumatra has not yet fully happened and needs deep empirical studies. Determination of South Sumatra as a central area of growth indicates economic growth is the effect of small industrial agglomerations. The analysis technique in this study consists of qualitative and quantitative descriptive. The variables used to measure the potential of agglomeration in small industries are economies of scale, labor wages, and raw material costs and marketing. To see the effect of agglomeration of small industries with economic growth simple regression methods is used with panel data. The results of the study found: 1) Small industries in South Sumatra have strong potential for agglomeration, as seen from relatively high-efficiency values, monthly labor wages that are above Sectoral Minimum Wages, and low cost of raw materials and marketing; and 2) Regression results indicate there is a positive relationship between agglomeration of small industries and economic growth.