Comparison of Economic Sector Performance and Its Impact on Poverty in Gorontalo Province and North Sulawesi Province

This study aims to identify and analyze the performance of the economic sector on poverty in 2013-2017. The variables in this study are poverty as the dependent variable, and primary sector economic growth, secondary sector economic growth, and tertiary sector economic growth as independent variables. The data used in this study is secondary data obtained from BPS (Central Statistics Agency) Gorontalo Province and North Sulawesi Province. The analysis method used is panel data regression with a fixed effect model approach. In processing the data, the author uses the help of E-views 9 software. Based on the estimation results, it is found that the primary sector economic growth has a positive effect on poverty in Gorontalo Province. Meanwhile, the primary sector has a negative effect in North Sulawesi Province. Secondary sector economic growth has a negative effect on poverty in Gorontalo Province. Meanwhile, the secondary sector economic growth has a positive effect in North Sulawesi Province. Tertiary sector growth has a positive effect on poverty in Gorontalo Province. Meanwhile, the tertiary sector has a positive effect in North Sulawesi Province.


INTRODUCTION
High economic growth does not guarantee that Gorontalo will escape from major obstacles. In the midst of relatively high growth, Gorontalo has a large number of poor people. About 28.87 percent in 2004 the Gorontalo population lived in poor conditions. Among the regions in Gorontalo, the largest poverty pocket is in Gorontalo District. The problem of poverty is not solely influenced by economic factors. In the context of poverty too, there are problems related to education, health, and the most important thing is people's access to the availability of employment and capital.
This last factor demands the government's participation in managing public policies that are more pro-society. Therefore, government policies must be right on target. Even so, the spirit to obtain socio-political equality and economic justice will not meet the comfortable momentum of the sense of decentralization and regional autonomy, not implemented by the central government. by reasons of disparity and inequality with parent regions. Finally, Gorontalo officially became the 32nd province in Indonesia through Law No. 38 of 2000.
North Sulawesi Province is a province on the northern tip of Sulawesi Island which is directly adjacent to the Philippines. In the history of this regional government, this regional administration has changed several times in line with the dynamics of the administration of the nation. In 2000 the administrative area of North Sulawesi consisted of 5 districts and 3 municipalities, namely Minahasa, Bolaang Mongondow, Gorontalo, Sangihe, and Talaud, Boalemo and Manado, Bitung and Gorontalo districts. Gorontalo Province is a division of North Sulawesi. However, North Sulawesi Province has a strategic position because it is directly facing the East Asia and Pacific regions which are the centers of domestic and international investors to visit Sulawesi (Wikipedia, 2000).
To compare North Sulawesi and Gorontalo Provinces, we can see the percentage of poor people in Figure 1. Entering 2016 the poverty rate decreased to 17.72% and until 2017 the poverty rate became 17.56%. Gorontalo Province in reducing poverty has not been fully successful.
This can be seen from the average poverty rate of Gorontalo for the period 2013-2017 which is still relatively high, namely above 15 percent. When compared to North Sulawesi Province, Gorontalo is still very behind compared to North Sulawesi Province. In Figure 1 also shows the percentage of poor people in the province of North Sulawesi which also changes every year but is still consistent at 8% each year, this proves that the economy of the North Sulawesi population can be said to be more prosperous than Gorontalo.
In 2011 it reached 8.46% and in 2012 it decreased to 7.36%. In 2013, the percentage of poor people was 8.5%, then decreased in 2014 and again increased to reach 8.26% in 2015. Entering 2016 the poverty rate decreased to 8.34% and until 2017 the poverty rate became 8.1%. If you look at the percentage of poverty in Figure  1, it can be seen that the poverty rate of Gorontalo Province is higher than that of North Sulawesi Province. in 2016 the central statistics agency stated that Gorontalo ranks fourth with the highest number of poor people. Therefore, we need to know how to reduce poverty and what can reduce poverty when viewed from the comparison of these two provinces.
Of the 9 existing economic sectors, GRDP is divided into 3 major sectors, namely the primary sector, the secondary sector, the tertiary sector. Economic sectors in the Indonesian economy are divided into three main groups (Sukirno, 2006), namely: The primary sector, which consists of the agriculture, livestock, forestry, fisheries, mining and quarrying sectors. The secondary sector consists of manufacturing, electricity, gas and water, buildings. The tertiary sector, consisting of trade, hotels, restaurants, transportation and communication, finance, leasing and company services, other services (including government). Comparison of the economic sectors of Gorontalo Province and North Sulawesi Province can be seen in Figure 2. The GDP of the Gorontalo Province economic sector is still far behind compared to the Province of North Sulawesi. where in 2017 3 economic sectors in North Sulawesi Province were higher than Gorontalo Province. This proves that Gorontalo is still lagging behind in various economic sectors when compared to North Sulawesi Province. Basically, the situation and condition of a region supports changes in the economic structure. There is an area that is experiencing economic growth and there is also an economic decline. This can be influenced by several factors. Based on the background and supporting data above, the researchers are interested in analyzing the comparison of the two provinces.

METHODOLOGY
This study uses secondary data in the form of data that describes economic growth variables, namely the National and Provincial Gross Regional Domestic Product (GRDP) in Gorontalo and North Sulawesi Provinces on the basis of constant prices (ADHK 2013) then Regional Government Expenditures (Capital Expenditures), Investment. and Total Population obtained from the official website / website published by the government, namely the Central Statistics Agency (BPS). Data analysis used in this research is panel data in the form of time series data and cross section data (latitude series). Panel data is a combination of cross section data and time series data. The observations used a time span between 2013-2017, while for the cross-sectional data it includes districts / cities in Gorontalo Province in 2013-2017 and regencies / cities in North Sulawesi Province in 2013-2017.

Comparison of Economic Sector Performance and Its Impact on Poverty in Gorontalo Province and North Sulawesi Province
Email: ginndyppdamiti@gmail.com 4 From the test results to select the Common Effect Model and the Fixed Effect Model using the Chow Test, we get a Fstat of 8,238 with Ftable (1% = 3.51), (5% = 2.42) and (10% = 1.98), then from testing F stat> F table or seen from the p-value <alpha 0.05 so that HO is rejected. This means that the best model selection between Common Effect and Fixed Effect is the Fixed Effect Model (FEM).

Comparison of Economic Sector Performance and Its Impact on Poverty in Gorontalo Province and North Sulawesi Province
Email: ginndyppdamiti@gmail.com 5 The chi-squares value is 3,639 with a p-value of 0.303 and 0.499 with a p-value of 0.919. while the critical value with df of 3 at α = 1% and α = 5% are 11.34 and 7.81, respectively. Based on the chi-squares value and the p-value of the Hausman test, the appropriate model for analyzing the performance of the economic sector in the districts / cities of Gorontalo and North Sulawesi provinces is the Random Effect Model rather than the Fixed Effect model. After several testing stages were carried out to obtain the best estimation model, the selected estimation model was the Random effect model.

Regression Analysis Results
The average poverty rate of districts / cities in the provinces in Gorontalo observed during 2013-2017 was -22.59%. The growth of the primary sector shows a regression coefficient of 5.2984, which means that every 10 percent increase in the primary sector will increase the poverty rate by 5.2984 percent and significantly. The secondary sector shows a regression coefficient of 0.8537, which means that every 10 percent increase in the secondary sector will increase the poverty rate by 0.8537 percent. While the tertiary sector shows a regression coefficient of -4.6326, which means that every 10 percent increase in the tertiary sector will reduce the poverty rate by -4.6326 percent and significantly. When compared, the calculated Fvalue obtained is greater than the F-table value at all levels of significance so that Ho is rejected. Thus, it can be concluded that the sectoral economic variables (primary, secondary, teriser) together have a significant effect on poverty during 2013-2017 in Gorontalo and North Sulawesi Provinces.

Primary Sector and Poverty
For the Gorontalo model, from the results of the analysis that has been carried out, it is known that the t-value for the education sector variable is 9,116 with a significance value of 0,000. If this significance value is compared with the alpha value used 0.05, the significance value obtained is smaller than the alpha value so that Ho is rejected. It can be concluded that primary sector expenditure has a significant effect on poverty levels during 2013-2017.
Meanwhile, for the North Sulawesi model, it is known that the t-count value for the education sector expenditure variable is -0.2484 with a significance value of 0.8045. If this significance value is compared with the alpha value used 0.05, the significance value obtained is greater than the alpha value so that Ho is accepted. Thus, it can be concluded that the primary sector has no significant effect on the poverty rate during 2013-2017.

Secondary Sector and Poverty
For the Gorontalo model, from the results of the analysis that has been carried out, it is known that the t-value for the secondary sector variable is 0.795 with a significance value of 0.4312. If this significance value is compared with the alpha value used 0.05, the significance value obtained is greater than the alpha value so that Ho is accepted. Thus, it can be concluded that the secondary sector has no significant effect on the poverty rate during 2013-2017.
Meanwhile, for the North Sulawesi model, from the results of the analysis that has been carried out, it is known that the tvalue for the secondary sector variable is -2.2211 with a significance value of 0.0295. If this significance value is compared with the alpha value used 0.05, the significance value obtained is smaller than the alpha value so that Ho is rejected. Thus, it can be concluded that the secondary sector has a significant effect on poverty levels during 2013-2017.

Tertiary Sector and Poverty
Gorontalo model, from the results of the analysis that has been carried out, it is known that the t-count value for the tertiary sector variable is -3.4508 with a significance value of 0.0019. If this significance value is compared with the alpha value used 0.05, the significance value obtained is smaller than the alpha value so that Ho is rejected. Thus it can be concluded that the tertiary sector has a significant effect on the poverty rate during 2013-2017.
Meanwhile for the North Sulawesi model, from the results of the analysis that has been carried out, it is known that the tcount value for the education sector expenditure variable is -3,170 with a significance value of 0.0022. If this significance value is compared with the alpha value used 0.05, the significance value obtained is smaller than the alpha value so that Ho is rejected. Thus it can be concluded that the tertiary sector expenditure has a significant effect on the poverty level during 2013-2017.

The Influence of Primary Sector Growth on Poverty
The primary sector, which is dominated by the agricultural sector, has a positive influence on poverty. The increase in primary sector productivity will trigger an increase in the percentage of poor people in districts / cities in Gorontalo Province.

Comparison of Economic Sector Performance and Its Impact on Poverty in Gorontalo Province and North Sulawesi Province
Email: ginndyppdamiti@gmail.com 8 in the percentage of poor people, namely the low agricultural productivity in districts / cities in Gorontalo Province due to the inadequate utilization of available resource potentials effectively and efficiently, besides that the supporting facilities and infrastructure are also not optimally adequate. Agricultural technology, such as the use of quality seeds and technical culture systems are not evenly distributed, the scarcity and expensive means of production such as fertilizers, pesticides and agricultural machinery, besides that the presence of pests and diseases is also a serious problem in agricultural production and the use of agricultural land is not optimal, meaning there are still many there is agricultural land that is not cultivated.
Some of the obstacles in the development of the agricultural sector in Gorontalo are the high conversion of productive agricultural land to nonagricultural land, such as housing, shops and offices. The practice of illegal logging has the potential to increase the frequency of droughts and floods, which can lead to damage to irrigation systems and soil erosion, resulting in decreased agricultural productivity. Weak capacity and farmer institutions, lack of access to capital for farmers, performance of agricultural extension has not been optimal, there is no guarantee of marketing and processing products, and low efforts to increase the added value of agricultural products, besides water resources infrastructure systems such as rivers, lakes, swamps and dams. or the reservoir is still unable to reach all areas in districts / cities in Gorontalo Province. This result is in line with the results of research conducted by Ratna Sari (2007), which shows that the per capita GRDP variable in the primary sector has a partially significant positive correlation to the number of poor people.
The primary sector, which is dominated by the agricultural sector, has a negative impact on poverty. An increase in the productivity of the primary sector will reduce the percentage of poor people in districts / cities in North Sulawesi Province. Based on the results of this study, the GRDP of the Agricultural Sector and Poverty has a strong or strong relationship. By looking at the value of the coefficient which is negative, which means that there is a negative relationship, meaning that if the GRDP of the Agricultural Sector is low, the poverty rate will increase or if the Agricultural Sector is high then poverty will decrease. The only way to improve the welfare of most of the community members who live in the agricultural sector is by increasing the production of their crops and plantation crops and or increasing the price they receive for the products they produce.
Food security is one of the determinants of economic stability so that efforts to meet food sufficiency become a development framework capable of driving the development of other sectors. Food security is built on three main pillars, namely food availability, food access, and food utilization. The availability of physical food in the regions can be obtained from local production, imports, or food aid. Analysis of food availability and access to food becomes a strategic development stage because it is needed to examine the performance of food security in North Sulawesi. Self-sufficiency in food will be able to guarantee that people fulfill sufficient food needs, of proper quality, safe and without dependence from outside parties.
One of the efforts to increase food resilience and self-sufficiency is through food diversification, namely the process of developing food products that do not depend on one type of food but utilize various kinds of food in an optimal and sustainable manner. Local food sources in North Sulawesi Province include lowland rice and upland rice, livestock, plantations and fisheries. Food crops are one of the dominant agricultural subsectors in North Sulawesi. Rice and maize production figures are relatively stable and continue to increase every year, but the production of other commodities is not that big. Rice production in North Sulawesi Province during the 2011-2014 period experienced a relatively large increase. In 2011, rice production was recorded at 596,223 tons and in 2015 it reached 673,712 tons. Apart from the increase in rice harvest area, the increase in rice production during this period was also supported by the increase in rice productivity. One hectare of rice harvest area was able to produce 48.46 quintals of rice in 2012, this productivity increased to 47.31 quintals per hectare in 2014. The contribution of rice production in North Sulawesi province in 2015 amounted to 0.90 percent of the national rice production. The ideal conditions for planting rice have a considerable influence on other commodities. When the land is used for rice planting, other crops will experience a decrease in both the harvested area and production. Agricultural management is still managed traditionally so that its production is greatly influenced by climatic conditions.
The results of this study are in accordance with research conducted by Steva Olivianty, et al. (2015) which states that the agricultural sector has a strong relationship to poverty levels in the Sangihe Islands Regency.

The Influence of Secondary Sector Growth on Poverty
The secondary sector has a positive influence on poverty in districts / cities in Gorontalo Province. The increase in secondary sector output will increase poverty in districts / cities in Gorontalo Province. The secondary sector in Gorontalo Province is still unable to contribute to poverty alleviation. This is of course in accordance with the results released by the Central Bureau of Statistics that employment in the industrial sector is still very small. The release shows that the total number of workers working in the industrial sector in Gorontalo Province is only around 7 to 9 percent.
Workers who work in the industrial sector will certainly affect the number of poor people. Because basically, workers who work in the industrial sector earn more than workers who work in the agricultural sector. So the industrial sector should encourage a decrease in the number of poor people. What happened in Gorontalo Province, workers who work in this sector are still very minimal and it is very reasonable if the correlation between the two is unidirectional. The percentage of workers working in the industrial sector in 2013 was only 7.61 percent, increasing to 8.59 percent in 2014. Since 2015 it decreased by 7.23 percent and until the end of 2017 it increased to 7.95 percent of workers working in industrial sector.
The secondary sector which is dominated by the industrial sector has a negative impact on poverty. The increase in secondary sector productivity will reduce the percentage of poor people in districts / cities in North Sulawesi Province.
The secondary sector is able to absorb labor because in this sector the most important roles are the manufacturing sector and the construction sector. The manufacturing sector in the Regency / City in North Sulawesi Province is suspected to have been able to boost the economy. The secondary sector has made it easier for workers to feel wages that are in accordance with the results of their work. Due to the absorption of labor, unemployment in the two provinces has also decreased.
When unemployment has decreased, the multiplier effect is that poverty is reduced. These results are in line with research conducted by Ratna Sari (2007), which shows that the per capita GRDP variable in the secondary sector has a negative effect on the number of poor people.

The Influence of Tertiary Sector Growth on Poverty
The tertiary sector in districts / cities in Gorontalo Province has a negative impact on poverty. The increase in output from the tertiary sector has an impact on reducing the percentage of poverty in Gorontalo Province. This impact is indicated by several important things, such as the tertiary sector which has been able to absorb high productivity workers. The workers who work in this sector already have skills and abilities to work that are far above the average of workers who work in primary sertor. The tertiary sector which is dominated by wholesale and retail trade; car and motorcycle repair has been able to reduce the poor.
Workers who work in this sector also have very high incomes or wages, so they are far from poverty. So it is only natural and appropriate that people who work in this sector cannot be categorized as poor. The knowledge and skills possessed by workers working in this sector have been able to reduce the number of poor people in districts / cities in Gorontalo. This contrasts with research conducted by Ratna Sari (2007), which shows that the per capita GRDP variable in the tertiary sector has a positive effect on the poor.
The tertiary sector in districts / cities in North Sulawesi Province has a negative impact on poverty. The increase in output from the tertiary sector has an impact on reducing the percentage of poverty in Gorontalo Province. This impact is indicated by several important things, such as the tertiary sector which has been able to absorb high productivity workers. The workers who work in this sector already have skills and abilities that are far above the average of workers who work in primary sertor. The tertiary sector which is dominated by wholesale and retail trade; car and motorcycle repair has been able to reduce the poor.
Workers who work in this sector also have very high incomes or wages, so they are far from poverty. So it is only natural and appropriate that people who work in this sector cannot be categorized as poor. The knowledge and skills possessed by workers working in this sector have been able to reduce the number of poor people in districts / cities in Gorontalo. This contrasts with research conducted by Ratna Sari (2007), which shows that the per capita GRDP variable in the tertiary sector has a positive effect on the poor.
According to Chenery in Suharyono (2013: 18-19), if there is a movement of labor from the primary sector to the tertiary sector, then the economy is still said to be traditional because these two sectors cannot produce maximum output which can then be used to create new jobs. However, the real structural transformation is the process of shifting the economic structure from the primary sector to the secondary sector which can produce higher output, while the role of the tertiary sector remains.
The high absorption of labor in the tertiary sector in the above study is due to the factor of population mobility to the city and the majority of urban life requires service. Sectors that have a dominant influence in poverty alleviation in North Sulawesi, such as the results of research conducted by Anton Trijayanto (2016), are the building and construction sector as well as the transportation and communication sector. This means that the absorption of workers who work in the tertiary sector in North Sulawesi has become the largest contributor to the economy of North Sulawesi.