Analysis of Business Fields Affecting Gross Regional Domestic Product of East Kalimantan Province

The economic growth of East Kalimantan Province can be measured based on the Gross Regional Domestic Product (GRDP) of East Kalimantan, especially GRDP, at constant prices. This study intends to determine the business fields that affect East Kalimantan's GRDP by regencies/cities through a production approach using panel data regression analysis. East Kalimantan's GRDP is based on 17 business sectors arranged in nine independent variables in this study. We divided the research data into two periods: before the COVID-19 pandemic, 2014 to 2019, and during the COVID-19 pandemic, from 2020 to 2021. Based on the analysis results, the Common Effects Model (CEM) performed better in estimating East Kalimantan GRDP data by regencies/cities before the pandemic. As for the data during the pandemic, modeling should be done using the Random Effects Model (REM) with individual effects. The analysis results show that all independent variables, namely the nine business sectors, affect East Kalimantan's GRDP by regencies/cities before and during the pandemic. However, during the pandemic, two business fields reduced the value of East Kalimantan's GRDP by regencies/cities for every one million rupiah increase in the value of the GRDP of the business field. The business fields are wholesale and retail trade, repair of cars and motorcycles, provision of accommodation, and food and beverages (X6). And financial and insurance services; real estate (X8). This decrease means that the government needs to examine and pursue strategies for these business fields to increase the GRDP of East Kalimantan by regencies/cities.