Economic Base Theory

This theory is based on the export of goods (commodities). Target development of this theory is the increase in the rate of growth, job creation, and increased revenue. The process of development of the area are responding to overseas demand, or within or outside the country and the multiplier effect nodalitas (Geltner, 2005). This theory is very popular and easy to understand, the data available emphasize the importance of local industry. Therefore simple, this theory can only predict short-term and unable to respond to long-term changes. Only emphasized the need to develop non-base industries, not knowing that the regional economy is to integrate all economic activities to support each other. Application development of export-oriented industries and import substitution, promotion and recruitment industries, increased economic efficiency of export through improvements in infrastructure. For that there is integration between the type of industry, infrastructure, and industrial expansion. Hypotheses can be arranged in addition to location and also the role of sectoral LQ (Location Qoutient) residential real estate construction sector in one region.

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