The LQ analysis method is used to identify leading commodities by comparing the significance of a commodity in the study area to the significance of that commodity at the broader regional level (Jafar & Meilvidiri, 2021; Morrissey, 2016). Here is the LQ

formula: (1)

LQ = Sector i LQ coefficient

Qij = GRDP sector i in the study area

Qj = Total GRDP in the study area

Qir = GRDP sector i in the reference area

Qr = Total GRDP in the reference region

The DLQ analysis technique represents an advancement of the LQ method, aimed at assessing the future growth potential of key commodities (Faid et al., 2018) (Nurmayenti et al., 2023). The formula employed in the DLQ approach is:

(2)

DLQ = DLQ coefficient sector i

Gij = Average GRDP growth of sector i in the study area

Gj = Average total GRDP growth in the study area

Gip = Average GRDP growth of sector i in the reference region

Gp = Average total GRDP growth in the reference region

t = Time (year)

The MRP is an analytical technique employed to assess the growth of activities at both micro and macro levels (Widyaningrum & Cahyono, 2020). This approach to MRP analysis can be categorized into two distinct types::

In this study, overlay analysis is a mapping of LQ analysis and MRP analysis using Tableau software (Widyaningrum & Cahyono, 2020). Four criteria need to be considered in overlay analysis, namely:

1) Contribution (+) and growth (+) indicate that the sector makes a significant contribution and is growing.

2) Contribution (+) and growth (-) indicate that the sector makes a significant contribution but has small growth.

3) Contribution (-) and growth (+) indicate that the sector has significant growth but a small contribution.

4) Contribution (-) and growth (-) indicate that the sector is not potential.

Based on data analysis that researchers have carried out, the LQ generated from mapping the 2014-2018 and 2019-2023 periods is shown in Figure 2 and Figure 3.

Based on Figure 3 and Figure 4, the LQ analysis for Solo Raya indicates a dynamic transformation in the economic structure, which includes primary, secondary, and tertiary sectors. There was also a significant change in the potential base sector between the 2014-2018 and 2019-2023 periods in some regions, while other regions remained stable without significant changes during the observation period. This result illustrates that each region chooses to focus on the development of its superior sectors, reflecting the region's ability to adapt and strengthen sectors that have comparative advantages.

These findings support the broader theory of economic transformation as explained by (Todaro & Smith, 2020), where an economy undergoes a transition from the agricultural sector (primary) to the industrial sector (secondary) and finally the service sector (tertiary). This process is a typical characteristic of modern economic development, in which regions are shifting from dependence on natural resources to more manufacturing- and service-oriented sectors, which in turn drives productivity and more sustainable economic growth.

In Boyolali Regency, there have been changes in the structure of the economic sector during the 2014-2018 and 2019-2023 periods. Initially, there were 7 sectors, which included agriculture, forestry, and fisheries; mining; transportation and warehousing; company services; educational services; health services and social activities; and other services. However, over time, there was a transformation, and the company's service sector, which was a base sector, turned into a non-base sector. This situation led to a change in 6 sectors. This change can be explained by measures to diversify the regional economy. The government and local economic actors are working to develop other sectors to reduce dependence on the corporate services sector, creating a more balanced economic structure. As a result, the contribution of this sector to the total GRDP has decreased. LQ analysis shows a decline in the company's service sector advantage, with the LQ value from 1.00 (2014-2018) to 0.99 (2019-2023), indicating that this sector is no longer the main driver of the regional economy.

In Karanganyar Regency during the 2014-2018 period, there are 7 base sectors. They include the processing industry sector, procurement of electricity and gas, water supply, provision of accommodation and food and drink, financial services, real estate, and educational services. However, in the 2019-2023 period, there has been a change in the real estate sector. Education services are no longer included in the base sector, so there are only 5 sectors that are the main focus in Karanganyar District. The change in the real estate and education services sector from the basic sector to the non-base sector in Karanganyar is due to the development of other sectors that are more dominant, such as the processing industry and financial services. This economic diversification shifts the focus of investment and labor market, so that the contribution of the real estate and education sectors to GDP has relatively decreased. The Location Quotient (LQ) analysis shows a decline in the LQ value of these two sectors below 1 during the 2019-2023 period, which indicates that these sectors no longer have a local advantage over the national average.

In Klaten Regency, there has been a change in the base sector from 8 to 9 sectors. This change occurred in the 2014-2018 time frame, which included the mining and quarrying sector; procurement of electricity and gas; wholesale-retail trade and repair of cars and motorcycles; provision of accommodation and food and beverages; financial services; educational services; health services and social activities; and other services. However, in the 2019-2023 period, there have been changes in Klaten Regency, where the processing industry sector is the base sector, so there are 9 base sectors in Klaten Regency. The change of the processing industry sector to a base sector in Klaten is due to the increase in productivity and competitiveness of this sector, both in the local and national markets. This is reflected in the LQ value which increased from 0.97 in the 2014-2018 period to 1.03 in the 2019-2023 period, which shows that the processing industry sector has a local advantage compared to the national average. This increase makes the processing industry sector the main pillar of the regional economy.

In the district of Sragen, there was a change in the base sector. In the 2014-2018 period, there were 8 base sectors, including agriculture, forestry, and fisheries; mining and quarrying; electricity and gas procurement; water supply; wholesale and retail trade, as well as the repair of cars and motorcycles; company services; educational services; and other services. However, in the 2019-2023 period, there was a change to 9 base sectors. These changes include the procurement of water, which is no longer a base sector, as well as the addition of the treatment industry sector and the provision of accommodation and food and drink, which was not previously a base sector, which became a base sector. These changes can be attributed to economic diversification efforts in the region, which led to the development of more productive sectors. The water supply sector, which once played a pivotal role, saw a decline in its contribution to the GRDP, causing it to lose its base sector status. Conversely, the processing industry and the accommodation and food and drink sectors experienced significant growth, driven by increased production, local consumption, and tourism. Data from the BPS further supports this shift, showing that these two sectors have become substantial contributors to Sragen's economy, highlighting their new status as key pillars of regional economic growth.

In Solo Raya, three regions did not undergo base sector transformation in the 2014-2018 and 2019-2023 periods. The three regions are Sukoharjo Regency, Wonogiri Regency, and Surakarta City. Sukoharjo Regency has a base sector that includes the processing industry; procurement of electricity and gas; wholesale and retail trade, as well as the repair of cars and motorcycles; transportation and warehousing; provision of accommodation and food; information and communication; financial services; real estate; company services; and health services and social activities. Meanwhile, Wonogiri Regency has basic sectors in the form of agriculture, forestry, and fisheries; mining and quarrying; water supply; wholesale and retail trade, as well as the repair of cars and motorcycles; transportation and warehousing; financial services; company services; government administration, defense, compulsory social security; educational services; health services and social activities; and other services. Finally, Surakarta City has a base sector that includes the procurement of electricity, gas, and water supply; construction; wholesale and retail trade, as well as the repair of cars and motorcycles; provision of accommodation and food; information and communication; financial services; real estate; company services; government administration, defense, compulsory social security; educational services; and health services and social activities. These regions have maintained a strong reliance on specific sectors that consistently demonstrate competitive advantages. For instance, Surakarta City continues to thrive on trade and services due to its status as a regional hub, while Wonogiri and Sukoharjo rely on agriculture, manufacturing, and textiles sectors deeply embedded in their economic structures (Sulistyowati et al., 2022).

Based on Table 1, it can be seen that in each region in Solo Raya, almost all sectors have DLQ values greater than 1. This result suggests that these sectors have strong growth potential and are likely to become important economic base sectors in the future. According to research by Hutajulu et al. (2018), sectors with DLQ values greater than 1 are considered "prospective" because they indicate that the sector's growth rate exceeds the overall regional growth, demonstrating its competitive advantage. However, several sectors in the region have DLQ values of less than 1, indicating that these sectors are not expected to grow at a rate sufficient to contribute significantly to future economic development. As suggested by (Layasari et al., 2021), sectors with DLQ values below 1 are typically less competitive and may face stagnation or even decline, making them less viable as economic base sectors moving forward. This differentiation helps identify which sectors should be prioritized for development to drive sustainable growth in the region.

The financial services sector in Solo Raya shows great potential in supporting regional economic growth. These findings are in line with the global trend where the financial services sector is rapidly developing through digitalization and restructuring that strengthens labor productivity despite the overall decline in the number of workers ((Rodrigues et al., 2022); Vu & A(Vu & Asongu, 2023)). In addition, the potential of the processing industry sector in Solo Raya in encouraging economic growth and labor absorption is in line with the findings of international studies that show the importance of Total Factor Productivity (TFP), Labor Quality, and digital transformation in increasing the productivity of the industrial sector. A combination of key elements such as the availability of raw materials, infrastructure, skilled labor, and policy support are the main determinants of the success of the sector (Waldman & Jensen, 2016).

This finding is also in line with previous research by (Soebagyo & Hascaryo, 2016), (Arif & Purnomo, 2017), and(Winardi et al., 2021), which show that the processing industry and financial services sector play a key role in regional development. This is reinforced by factors such as technological innovation, supportive regulations, increased financial literacy, and network connectivity, which are the driving force for the growth of the financial services sector (Keuangan, 2021).

The combination of a strong processing and financial services industry sector, supported by digital transformation and adaptive regulation, will be an important pillar in sustainable economic development in the Solo Raya. Digitalization not only accelerates the growth of the financial services sector, but also increases the Total Factor Productivity (TFP) of the industrial sector, thereby providing a positive multiplier effect on labor absorption and regional economic welfare.

Based on the analysis conducted over two periods (2014-2018 and 2019-2023), RPr and RPs values were derived and grouped into four categories that depict the main economic activities in each region within the Solo Raya. Category 1 shows significant growth in both regions, fostering opportunities for equitable economic development and mutual support. Category 2 reflects rapid growth in the reference region, while the study region shows little to no growth, highlighting economic disparities that require targeted interventions to stimulate growth in the study region. Category 3 indicates that the study region has experienced growth, even though the reference region remains stagnant, signaling inequality that must be addressed to prevent further divergence. Category 4 represents stagnation in both regions, signaling deeper structural issues within the economy, and necessitating aggressive policy measures to spur economic recovery and development (Widyaningrum & Cahyono, 2020).

Changes in the economic structure in Solo Raya, as depicted in Figure 4 and Figure 5 through the MRP analysis, highlight varying regional dynamics between the 2014-2018 and 2019-2023 periods. In Boyolali Regency, there was a shift from Category 1, indicating strong growth at both the district and provincial levels, to Category 2, where growth remained dominant in Central Java but slowed in Boyolali. This change may reflect challenges such as limited economic diversification or infrastructure constraints, reducing Boyolali's relative competitiveness. Conversely, Sragen and Sukoharjo Regencies transitioned from Category 2 to Category 1, signaling substantial progress in local economic activities. This improvement could stem from strategic investments, policy interventions, or the successful development of competitive sectors that aligned these regencies with provincial growth trends.

Meanwhile, Karanganyar, Klaten, and Wonogiri Regencies maintained their positions in Category 1 across both periods, suggesting stability in their economic performance, likely driven by resilient sectors and favorable investment climates. The City of Surakarta, however, remained in Category 2, highlighting ongoing challenges in achieving significant growth relative to Central Java Province.

These findings align with growth theories such as Rostow’s Stages of Economic Growth, which emphasize the role of infrastructure, labor, and sectoral diversity in sustaining economic development. The variations also reflect Hirschman’s Unbalanced Growth Theory, which posits that regional growth often progresses unevenly due to disparities in resources and investment. Supporting studies, including (Setiawan, 2023) and(Hidayat et al., 2021), emphasize the critical role of identifying superior sectors and implementing targeted policies to enhance regional competitiveness.

Overall, the MRP analysis underscores the importance of addressing disparities across regions through the strategic development of competitive sectors, tailored policies, and improved infrastructure. These measures are essential to fostering inclusive and sustainable economic growth throughout the Solo Raya.

In considering the results of LQ analysis with the MRP, an overlay analysis can be carried out in the context of the Solo Raya and Central Java Province. Thus, the transformation of the structure of the Solo Raya area can be determined through the mapping presented in Figure 6and Figure 7.

Based on the overlay analysis in Figure 6and Figure 7, it can be seen that only the Boyolali district in Solo Raya has undergone significant transformation. In the beginning, the sectors in the region made significant contributions and growth. However, after transforming, these sectors still make a considerable contribution, but the growth becomes small. The slower growth could also be linked to insufficient infrastructure enhancements, which are necessary to sustain and boost the productivity of these sectors. Without continuous infrastructure improvements, such as better transportation networks or digital connectivity, the potential for growth diminishes even if the sectors maintain significant contributions. These findings indicate the existence of dynamics in economic development in line with the research of (Nurpita & Khoirudin, 2023), which states that infrastructure plays an essential role in facilitating the growth of leading sectors.

The non-occurrence of economic structural transformation in Karanganyar, Sragen, and Sukoharjo Regencies during the 2014-2018 and 2019-2023 periods, although their leading sectors made a large contribution, can be caused by several factors. Dependence on certain established sectors without diversifying into new sectors with high growth potential can limit adaptation to economic changes and technological innovations. In addition, challenges such as inadequate infrastructure, limited human resource development, and lack of investment in innovation and productivity improvement can hinder economic transformation in the region.

Similarly, Klaten, Wonogiri, and Surakarta City Regencies which remain in the category of sectors with large contributions and growth reflect the potential for saturation of mature sectors that dominate the economic structure. This could result in slower relative growth as these sectors have reached peak productivity levels without diversification into new emerging industries. In addition, systemic constraints such as bureaucratic barriers, suboptimal policy incentives, or lack of market connectivity are also inhibiting factors.

This result is in line with the findings of (Ratnadewati et al., 2024), which show that uneven development in Yogyakarta can pose challenges in making the most of local potential. In this context, the region-based approach emphasized by (Saputra et al., 2024) is very relevant to understanding the potential and challenges faced by each region in the Solo Raya. With this approach, more specific and local needs-based strategies, such as infrastructure upgrades, workforce development, and policy incentives that support economic diversification, can be implemented to address economic stagnation and drive a more inclusive transformation.

Overall, the transformation of the economic structure in the Solo Raya area shows a significant shift from the primary sector to the secondary and tertiary sectors. This shift is similar to the findings of (Saputra et al., 2024), which analyzed sustainable economic development in Sukamara Regency, Central Kalimantan. This study shows that the sustainable development of the industrial and service sectors can support inclusive and sustainable economic growth. This study emphasizes the importance of regional development strategies that take into account the superior potential of economic sectors in facilitating economic transformation and encouraging the welfare of people in the region. Furthermore, (Fazaa et al., 2023), in their study in the Kedungsepur area, highlighted that inequality in economic growth and the identification of superior sectors need to be addressed with region-based strategies to optimize the potential of superior sectors.

To strengthen economic development in Solo Raya, the government needs to pay attention to several policy implications based on the findings of this study. First, infrastructure development must be a priority, especially in areas with potential for superior sectors such as the processing industry and financial services. Improving infrastructure, such as transportation and digital connectivity, will drive faster growth and strengthen regional competitiveness. Second, economic diversification needs to be encouraged, especially in regions that still depend on one or two major sectors. This diversification is important to reduce the risk of economic stagnation and create long-term stability. Third, support for investment and adoption of new technologies must be strengthened. High-potential sectors require increased productivity and efficiency through technological innovation, which in turn will create new jobs and strengthen the local economy. Finally, more targeted regional development policies can be carried out by utilizing geospatial data. This approach allows for more specific development planning, tailored to the unique needs and potentials of each region, thus encouraging inclusive and sustainable development.

I would like to express my deepest gratitude to the esteemed lecturers at the Faculty of Economics and Business, Sebelas Maret University: Dr. Evi, Mr. Mulyanto, Dr. Sarjiyanto, and Dr. Wang, for their invaluable guidance, knowledge, and direction throughout the preparation of this research paper. I am also profoundly thankful to all parties who have provided support, both directly and indirectly. The encouragement, constructive input, and assistance I have received have been instrumental in shaping and enhancing this work. Your dedication, cooperation, and unwavering support have made it possible to complete this research successfully. Thank you for contributing to this academic endeavor