The spatial econometrics of economic growth in Sumatera Utara province

Rosa Rosmanah, Vievien Abigail Damu Djara, Yudhie Andriyana, I. G. N. M. Jaya

Abstract


This study aims to analyze the economic growth of Sumatera Utara using an econometric spatial model. Euclidean distance and Moran’s I test were applied to determine the neighborhood and identify the autocorrelation. Based on the Lagrange Multiplier test, the spatial lag model (SAR) was considered. The R Shiny program, which was previously developed by the researcher, was used to estimate the model parameters. The SAR model's diagnostic checking shows that non-autocorrelation, normality, and homogeneity assumptions have been satisfied. Economic growth in the agricultural, forestry, and fishing sectors has a positive and significant effect on increasing economic growth in Sumatera Utara. A good strategy to increase the role of this sector could significantly improve the economy of Sumatera Utara. Coconut production has a positive and significant effect on increasing economic growth in Sumatera Utara. The unemployment rate has a negative and significant effect on the decreasing economic growth in Sumatera Utara. Reducing the unemployment rate could be one strategy to improve the economic growth of Sumatera Utara.

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Published: 2022-04-04

How to Cite this Article:

Rosa Rosmanah, Vievien Abigail Damu Djara, Yudhie Andriyana, I. G. N. M. Jaya, The spatial econometrics of economic growth in Sumatera Utara province, J. Math. Comput. Sci., 12 (2022), Article ID 128

Copyright © 2022 Rosa Rosmanah, Vievien Abigail Damu Djara, Yudhie Andriyana, I. G. N. M. Jaya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

 

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