Modelling Spatial Spillovers of regional economic growth in East Java: An empirical analysis based on Spatial Durbin Model

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N. Atikah, S. Rahardjo, D.L. Afifah, N. Kholifia

2021 Journal of Physics: Conference Series Vol. 1872 Issue 1 Conference paper Cited by 8 Quartile

Abstract

Spatial Durbin Model (SDM) is the development of the spatial autoregressive model (SAR). In the SDM model, the dependent variable and the independent variable both contain spatial effects. Spillover occurs when changes in one area cause changes in another. The spillover effect needs to be considered because it can affect the model. This study's main objective is to estimate the effect of spillover on the economic growth of districts/cities in East Java. Per capita income can be an indicator of regional economic growth, which has a spatial effect. The variables estimated to affect economic growth include total population, number of industries, and labor force. Data analysis in this study using R software. Researchers found a positive spatial spillover of population, number of industries, and labor force on economic growth in East Java. © Published under licence by IOP Publishing Ltd.

Affiliations

Departement of Mathematics, Faculty of Mathematics and Science, Universitas Negeri Malang, Indonesia