Issues in applying spatial autocorrelation on Indonesia's provincial income growth analysis

    Research output: Contribution to journalArticle

    Abstract

    Research in regional growth analysis has acknowledged the importance of spatial effects as part of the analysis. Recently, there were several attempts to apply regional growth regression in Indonesia that raise the possible necessity to implement spatial effects in the growth regression. However, as the largest archipelagic country in the world, Indonesia has distinctive features in relation to spatial analysis that can hamper the application of spatial effects. The aim of this study is to investigate the necessity and the issues in applying spatial effects on Indonesia's provincial income per capita growth by introducing the spatial lag and error into the growth regression. The exercise shows the existing problems in applying spatial effects on Indonesia's regional growth regression. Moreover, the conclusion of the growth regression is hardly changed by the inclusion of spatial effects.
    Original languageEnglish
    Pages (from-to)375-402
    Number of pages28
    JournalAustralasian Journal of Regional Studies
    Volume20
    Issue number2
    Publication statusPublished - 2014

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    autocorrelation
    Indonesia
    income
    regression
    analysis
    Income growth
    Spatial effects
    Spatial autocorrelation
    spatial analysis
    effect
    Growth regressions
    inclusion
    Regional growth

    Cite this

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    title = "Issues in applying spatial autocorrelation on Indonesia's provincial income growth analysis",
    abstract = "Research in regional growth analysis has acknowledged the importance of spatial effects as part of the analysis. Recently, there were several attempts to apply regional growth regression in Indonesia that raise the possible necessity to implement spatial effects in the growth regression. However, as the largest archipelagic country in the world, Indonesia has distinctive features in relation to spatial analysis that can hamper the application of spatial effects. The aim of this study is to investigate the necessity and the issues in applying spatial effects on Indonesia's provincial income per capita growth by introducing the spatial lag and error into the growth regression. The exercise shows the existing problems in applying spatial effects on Indonesia's regional growth regression. Moreover, the conclusion of the growth regression is hardly changed by the inclusion of spatial effects.",
    keywords = "growth regression, Indonesia, spatial econometrics",
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    year = "2014",
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    pages = "375--402",
    journal = "Australasian Journal of Regional Science",
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    AU - VIDYATTAMA, Yogi

    PY - 2014

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    N2 - Research in regional growth analysis has acknowledged the importance of spatial effects as part of the analysis. Recently, there were several attempts to apply regional growth regression in Indonesia that raise the possible necessity to implement spatial effects in the growth regression. However, as the largest archipelagic country in the world, Indonesia has distinctive features in relation to spatial analysis that can hamper the application of spatial effects. The aim of this study is to investigate the necessity and the issues in applying spatial effects on Indonesia's provincial income per capita growth by introducing the spatial lag and error into the growth regression. The exercise shows the existing problems in applying spatial effects on Indonesia's regional growth regression. Moreover, the conclusion of the growth regression is hardly changed by the inclusion of spatial effects.

    AB - Research in regional growth analysis has acknowledged the importance of spatial effects as part of the analysis. Recently, there were several attempts to apply regional growth regression in Indonesia that raise the possible necessity to implement spatial effects in the growth regression. However, as the largest archipelagic country in the world, Indonesia has distinctive features in relation to spatial analysis that can hamper the application of spatial effects. The aim of this study is to investigate the necessity and the issues in applying spatial effects on Indonesia's provincial income per capita growth by introducing the spatial lag and error into the growth regression. The exercise shows the existing problems in applying spatial effects on Indonesia's regional growth regression. Moreover, the conclusion of the growth regression is hardly changed by the inclusion of spatial effects.

    KW - growth regression

    KW - Indonesia

    KW - spatial econometrics

    M3 - Article

    VL - 20

    SP - 375

    EP - 402

    JO - Australasian Journal of Regional Science

    JF - Australasian Journal of Regional Science

    SN - 1324-0935

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    ER -