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Analysis reveals key sectors like Information and Communication drive economic recovery in Palu City, indicating ongoing competitiveness challenges.
Sustainable economic growth requires structural transformation to enhance the competitiveness of leading sectors in a region. This research aims to analyze the structural transformation of Palu City's economy from 2019 to 2024 using Location Quotient (LQ) and Shift-Share Analysis (SSA) analytical tools. The research results show that sectors such as Construction, Wholesale and Retail Trade, and Information and Communication have LQ values greater than 1 and contribute significantly to Palu City's GRDP. Conversely, the Agriculture and Manufacturing sectors reflect challenges in maintaining competitiveness. Results from Shift-Share Analysis reveal that the Information and Communication, Trade and Construction sectors remain the main pillars in post-disaster economic recovery, despite decreases in some components. This research contributes to understanding Palu City's economic transformation and provides a foundation for more effective economic development policies.
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Zubair et al. (2025) studied this question.
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