Dependencies Spatial Economic and Employment Indicators in East Java
Article Sidebar
Main Article Content
Abstract
This study investigates the spatial dynamics of economic growth in East Java Province by applying spatial panel econometrics models. Using secondary panel data from 38 districts/cities for the period 2016–2023, the research incorporates variables such as economic growth rate, regional original income (PAD), capital expenditure, and labor. The Moran’s I test reveals a negative value, indicating spatial dispersion patterns where high-growth regions are surrounded by low-growth areas and vice versa, suggesting regional inequality. Furthermore, the Spatial Autoregressive (SAR) model confirms the existence of significant inter-regional spillover effects, meaning that economic growth in one region can positively influence neighboring areas. The Spatial Error Model (SEM) also highlights the role of unobserved external factors such as geography, institutions, and socio-cultural aspects. Empirical findings show that PAD and capital expenditure have a significant positive impact on economic growth, while labor does not significantly affect regional development outcomes, emphasizing the importance of workforce quality over quantity. These results underline the necessity of collaborative and inclusive development planning, fiscal strengthening, and strategic investment in human resources to reduce interregional disparities and promote sustainable growth across East Java.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
M. P. Todaro, S. C. Smith, and B. D. Putra, “Pembangunan Ekonomi edisi 11 jilid 1,” Jakarta: Erlangga, 2011.
R. Adisasmita, Pengelolaan pendapatan dan anggaran daerah. Pusat Pengembangan Keuangan dan Ekonomi Daerah, Fakultas Ekonomi …, 2009.
L. Anselin, Spatial econometrics: methods and models, vol. 4. Springer Science & Business Media, 1988.
T. G. Conley, “Spatial econometrics,” in The new Palgrave dictionary of economics, Springer, 2008, pp. 1–9.
J. P. LeSage, “The theory and practice of spatial econometrics,” Univ. Toledo. Toledo, Ohio, vol. 28, no. 11, pp. 1–39, 1999.
N. G. Mankiw, D. Romer, and D. N. Weil, “A contribution to the empirics of economic growth,” Q. J. Econ., vol. 107, no. 2, pp. 407–437, 1992.
X. Sala-i-Martin, “Economic integration, growth, and poverty,” 2007.
E. López‐Bazo, E. Vayá, and M. Artis, “Regional externalities and growth: evidence from European regions,” J. Reg. Sci., vol. 44, no. 1, pp. 43–73, 2004.
J. Elhorst, “Spatial Panel Data Models,” in Handbook of Applied Spatial Analysis, 2010, pp. 377–407. doi: 10.1007/978-3-642-03647-7_19.
G. M. Resende, “Spatial dimensions of economic growth in Brazil,” Int. Sch. Res. Not., vol. 2013, no. 1, p. 398021, 2013.
K. Behrens and J.-F. Thisse, “Regional economics: A new economic geography perspective,” Reg. Sci. Urban Econ., vol. 37, no. 4, pp. 457–465, 2007.
P. Krugman, B. P. Bosworth, and R. N. Cooper, “Domestic Policies in a Global Economy [with Comments and Discussion],” in Brookings Trade Forum, 1999, pp. 73–103.
C. F. Manski, “Economic analysis of social interactions,” J. Econ. Perspect., vol. 14, no. 3, pp. 115–136, 2000.
M. Ahmad, “Globalisation, economic growth, and spillovers: A spatial analysis,” Margin J. Appl. Econ. Res., vol. 13, no. 3, pp. 255–276, 2019.
E. L. Glaeser, Cities, agglomeration, and spatial equilibrium. OUP Oxford, 2008.
S. Hasna, “Analisis Spasial Pengaruh Dana Perimbangan Terhadap Ketimpangan Pendapatan Di Provinsi Jawa Timur Tahun 2008-2011,” J. BPPK Badan Pendidik. dan Pelatih. Keuang., vol. 6, no. 2, pp. 1–18, 2013.