Analysis of Interregional Spillover Effects on Industrial Sector Growth in the Gerbangkertosusila - 4

Billytona, Cinta
Primadhana, Wiwin Priana

Journal of Regional Economics and Development
Vol. 3 No. 2 (2026): February

This study examines spillover and reciprocal relationships of industrial sector growth among Sidoarjo, Gresik, Pasuruan, and Mojokerto. The Two-Stage Least Squares (TSLS) method was applied using industrial GRDP data from 2000–2024. The results show that: (1) Sidoarjo and Gresik have a positive and mutually reinforcing relationship; (2) Sidoarjo and Pasuruan exhibit a reciprocal but weak relationship; and (3) Sidoarjo and Mojokerto show a reciprocal but negative relationship, indicating spatial competition. These findings highlight that interregional industrial interactions vary and are shaped by agglomeration forces and regional industrial structures.