Analysis of the Impact of Special Economic Zone (SEZ) Gresik on the Economy of Gresik District

Desita Fitriani; Mohammad Wahed

doi:10.55927/fjmr.v4i7.347

Authors

Desita Fitriani Universitas Pembangunan Nasional “Veteran” Jawa Timur
Mohammad Wahed Universitas Pembangunan Nasional “Veteran” Jawa Timur

DOI:

https://doi.org/10.55927/fjmr.v4i7.347

Keywords:

Special Economic Zone (SEZ), Gross Regional Domestic Product (GRDP), Investment, Local Revenue, Manufacturing Industry

Abstract

Although Special Economic Zones play a role in encouraging economic growth, high economic growth is not necessarily followed by equitable distribution of benefits for the welfare of all levels of society. This study aims to compare economic conditions before and after the existence of the Gresik Special Economic Zone through a t-test and Granger causality test to determine the cause-and-effect relationship between the independent variables (investment, Local Revenue, processing industry) and the dependent variable (GRDP) during the 2017-2024 period. The results concluded that the Special Economic Zone (SEZ) of Gresik Regency has an impact on the regional economy and the comparison before and after the establishment of the Special Economic Zone (SEZ) shows changes that indicate a shift in the economic structure towards a more productive direction. In addition, the Special Economic Zone (SEZ) of Gresik Regency shows a strong spread effect with an increase in the processing industry sector which contributes directly to GRDP, as well as an influx of investment that increases Local Revenue. However, the backwash effect also occurs when investment activities are focused on the processing industry sector, which relies on Local Revenue as its main growth factor.

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