ETIKONOMI
Vol. 25 No. 1 (2026)

Revealing The Spatial Matter in Indonesia’s Economic Growth Model: A Cross-Province Analysis

Santoso, Edy (Unknown)
Annegrat, Ahmed Mohamed (Unknown)
Priyono, Teguh Hadi (Unknown)
Lestari, Endah Kurnia (Unknown)
Kusumawardhani, Vebry Eka (Unknown)



Article Info

Publish Date
19 May 2026

Abstract

Research Originality: This research integrates spatial econometric modeling to analyze the determinants of Indonesia's economic growth, highlighting the influence of spatial dependence on neighboring regions. It uses spatial models to provide insights into Indonesia's growth dynamics from a geographically interdependent perspective. Research Objectives: Examine the key factors driving Indonesia's economic growth by incorporating internal regional elements and external spatial influences from neighboring provinces. Research Method: This study employs a spatial econometric approach to analyze Indonesia’s economic growth across 34 provinces from 2015 to 2024. Empirical Results: The empirical analysis confirms the presence of spatial dependence in regional economic growth, with neighboring provinces influencing one another. Foreign Direct Investment (FDI), Domestic Direct Investment (DDI), and population significantly impact growth directly and through spillovers. However, road infrastructure has an insignificant effect. Implications: This research emphasizes the importance of provincial collaboration on investment, infrastructure, and trade. While population growth matters, skill enhancement is crucial for development. Policymakers should prioritize high-quality infrastructure and leverage spatial data to promote balanced growth and reduce regional disparities. JEL Classification: C33, O16, O18, R11

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Journal Info

Abbrev

etikonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Etikonomi is a peer-reviewed journal on Economics, Business and Management by Faculty of Economic and Business State Islamic University (UIN) Syarif Hidayatullah Jakarta. FOCUS This journal focused on economics, business, and management studies and present developments through the publication of ...