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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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
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author Firman Herdiansah
Setyo Tri Wahyudi
author_facet Firman Herdiansah
Setyo Tri Wahyudi
author_sort Firman Herdiansah
collection DOAJ
description 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.
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spelling doaj.art-b72ecbfb946947d19c2ac8c6678e790e2022-12-22T03:52:19ZengJurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas SriwijayaJurnal Ekonomi Pembangunan1829-58432685-07882020-07-01181637410.29259/jep.v18i1.116045216Testing the spatial auto-regression (SAR) model on Indonesia's regional economyFirman Herdiansah0Setyo Tri Wahyudi1Department of Economics Faculty of Economics and Business Universitas BrawijayaDepartment of Economics Faculty of Economics and Business Universitas BrawijayaIndonesia'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.https://ejournal.unsri.ac.id/index.php/jep/article/view/11604grdp, spatial, sar, spillover.
spellingShingle Firman Herdiansah
Setyo Tri Wahyudi
Testing the spatial auto-regression (SAR) model on Indonesia's regional economy
Jurnal Ekonomi Pembangunan
grdp, spatial, sar, spillover.
title Testing the spatial auto-regression (SAR) model on Indonesia's regional economy
title_full Testing the spatial auto-regression (SAR) model on Indonesia's regional economy
title_fullStr Testing the spatial auto-regression (SAR) model on Indonesia's regional economy
title_full_unstemmed Testing the spatial auto-regression (SAR) model on Indonesia's regional economy
title_short Testing the spatial auto-regression (SAR) model on Indonesia's regional economy
title_sort testing the spatial auto regression sar model on indonesia s regional economy
topic grdp, spatial, sar, spillover.
url https://ejournal.unsri.ac.id/index.php/jep/article/view/11604
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