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All Journal Journal of Economic, Management, Accounting and Technology (JEMATech) EQIEN - JURNAL EKONOMI DAN BISNIS ISOQUANT : Jurnal Ekonomi, Manajemen dan Akuntansi Performance Darma Sabha Cendekia Lingkar Ekonomika: Jurnal Ilmu Ekonomi dan Studi Pembangunan Economics Development Analysis Journal Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah
Badriah, Lilis Siti
Jurusan Ilmu Ekonomi dan Studi Pembangunan Universitas Jenderal Soedirman
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Energy Environmental Science Public Health Social Sciences

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Journal : Economics Development Analysis Journal

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Spatial Analysis and Spillover Effects on Economic Growth in Central Java Febriyana, Isna; Badriah, Lilis Siti
Economics Development Analysis Journal Vol. 14 No. 1 (2025): Economics Development Analysis Journal
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v14i1.19732

Abstract

This study investigates the impact of regional spillover effects on economic growth in Central Java’s regencies and cities, focusing on Knowledge Spillover, Industry Spillover, Private Investment Spillover, and Government Expenditure Spillover using a spatial econometrics panel model. The results indicate significant effects on local economic growth; however, direct spillover effects, which are represented by the variable Wx in the Spatial Durbin Model (SDM), were not significant. This may be due to limited resource mobility, varying regional absorption capacities, and temporal dynamics. Direct spillover effects typically involve immediate economic interactions between neighboring regions, but in this study, these effects did not materialize as expected. Conversely, indirect spillover effects, reflected by spatial parameters ρ in the Spatial Autoregressive Model (SAR) and λ in the Spatial Error Model (SEM), highlight the importance of broader spatial dynamics across regions. These effects underscore the significance of interregional linkages rather than direct regional interactions, showing that regional synergies play a crucial role in fostering economic growth. From a policy perspective, the study recommends strengthening interregional cooperation by enhancing mechanisms such as information flow, technology transfer, and investment. Investment in digital infrastructure, the creation of innovation hubs, and cross-regional investment funds can help bridge the development gap and foster sustainable growth. Policies that support labor mobility and skill-building opportunities, especially for marginalized groups and women, are essential to promote equitable and inclusive economic development across regions
Co-Authors Aan Zulyanto, Aan Afifah, Nindita Agus Arifin, Agus Amalia, Dwi Cahya Anggorojati, Raden Roro Siti Binar Arif Mulyadi Armida Salsiah Alisjahbana Azhar, Luthfi Faishal Bambang Bambang Binardjo, Goro Diah Setyorini Gunawan DIJAN RAHAJUNI, DIJAN Fatmawati, Ayu Kurnia Febriyana, Isna Ferry Hadiyanto Hardiyanto, Ferry Himawan, Muhammad Deni Kodrat Wibowo Maemonah, Maemonah Pudjianto, Hary Rakhmat Priyono, Rakhmat Sambodo, Herman Wicaksono, Muhammad Dicky