Seeking an optimal policy path, least “negative externalities” on regional growth in Chin State

The study attempts to investigate the current condition of economic growth in Chin State. Discussion paper tries to emphasize on the Factors of Production in the state. Secondary data are employed in the study and data coming from multiple sources, are in descriptive method. Purpose of the research is to seek the priority sector that can contribute to engine of economic growth of the State. The study mainly considers and assumes an accomplished period of implementation of infrastructure development by the regional government. The author formulates the research question as to what can happen in the regional economy after the state passed over the barriers for development (infrastructure development). The author concludes that “Tourism sector” can be one of the priority sectors that can contribute to economic growth possibility and sustainability, as well as the most appropriate and least of “negative externalities”. The author tries to propose a possible growth framework where the tourism sector contributes to the regional growth in long term and short term. The paper points out that even though regional when government implemented the development strategically and inclusively, local community has no opportunities to gain economic benefits from the regional development. The community can be exclude unexpectedly from the development by the government’s implementation on agro-based sectors and manufacturing sector as a policy prioritization. Additionally, the author founds that with 71.2 percent (INSTITUTE, June, 2007), the Chin population engaged in Agriculture (including hunting and forestry) sector. Unsustainability can be seen in the Chin state, if the percent will be remained.