<![CDATA[Regional inequality is a strategic issue in regional economics that occurs everywhere, including Banten Province, Indonesia. This research aimed to analyze the spatial dynamics of regional inequality among regencies/municipalities of Banten Province from 2017 to 2024. A spatial regression approach was utilized, especially the Spatial Durbin Model, which was able to not only determine the correlation between variables but also analyze the interregional direct effect and indirect effect. The result of Moran’s I test showed that, consistently, there was no significant global spatial autocorrelation; moreover, the local indicator spatial autocorrelation analysis also showed a limited cluster of inequalities, which was in Lebak Regency. However, the model estimation results proved that there was a significant spatial dependence, which indicated regional interaction. The population density variable was statistically proven to have an effect on regional inequality, with a negative direct effect on inequality within regions and a positive indirect effect on surrounding regions. Meanwhile, other variables were not proven significant. These results showed that the regional inequality in Banten Province had a latent spatial characteristic that was not completely reflected by descriptive analysis.]]>
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