How is Economic Structure Transformed? Evidence: West Kalimantan Province of Indonesia

Abstract

The Covid19 pandemic hit negatives contraction in economic structure. In West Kalimantan province, despite negative growth, primary and secondary sectors surprisingly drive positives contraction on the growth of mining, electricity, and agriculture. Based on this situation, we investigate the possibility of the structural transformation process during the pandemic. We translate Lewis's transformation theory to the chart of primary, secondary, and tertiary to see how the trendlines work generally. We use Static-Dynamic Location Quotient, Klassen typology, and Shift Share analysis, then discover negatives contraction in 2020 not significantly affected each sectors, but the pattern indicates the failed of transformation process between tertiary-primary, and the primary naturally proved as the main sector in economic structure. The critical point of our finding is the failure of structural transformation process potentially caused and locked by the failure of labour shifting.