Testing the spatial auto-regression (SAR) model on Indonesia's regional economy

Indonesia's regional economy that is proxy by using Gross Regional Domestic Product (GRDP) per capita to form clusters is investigated. Besides, by using the Spatial Auto-regression (SAR) model, the effect of household consumption in a region to the surrounding area's economy is examined....

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Bibliographic Details
Main Authors: Firman Herdiansah, Setyo Tri Wahyudi
Format: Article
Language:English
Published: Jurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas Sriwijaya 2020-07-01
Series:Jurnal Ekonomi Pembangunan
Subjects:
Online Access:https://ejournal.unsri.ac.id/index.php/jep/article/view/11604
Description
Summary:Indonesia's regional economy that is proxy by using Gross Regional Domestic Product (GRDP) per capita to form clusters is investigated. Besides, by using the Spatial Auto-regression (SAR) model, the effect of household consumption in a region to the surrounding area's economy is examined. The study on this topic is rather limited, especially in the regional economic development of the country. Furthermore, Indonesia is a heterogeneous country, and its consequence is that development policy should consider the geographic characteristics of the country. The results show that there are regional economy clusters in Java, Kalimantan, Sulawesi, and Sumatra. In contrast, household consumption in a region has a weak influence on the economy in the surrounding area.
ISSN:1829-5843
2685-0788