Indonesia is an archipelago country which comprises of two main parts, western and eastern regions and spread into over 500 districts. Each district has their own characteristics, especially in development aspect. Some districts have been growing faster on economic and social development, yet others still fall behind. Using Human Development Index and its components on education, health and economic variables over 2010-2018 period, this study aims to examine convergence on the regional human growth process and investigate the speed of convergence across districts. The result reveals convergence occurred on human development process and its determinants across districts during 2010-2018. Education variables are assumed as the main contributor for boosting the speed of convergence of human development. Spatial dependences are detected among districts, followed by the spatial clusters and spatial outliers through global and local spatial autocorrelation. Applying two spatial autoregressive models, spatial autoregressive lag model (SAR) and spatial autoregressive error model (SEM), confirmed that there is significant spatial spillovers.The speed of convergence for all variables are much declining after the inclusion of spatial lag and error model. As the policy implication, since regional inequality in term of human development is still a major issue, it will be a call for better coordination and cooperation within and between regions.
This article evaluates the effect of digitalization and credit access in boosting regional growth performance across 38 districts in East Java over the 2010-2021 period. Using google trend analysis, we capture the pattern and spatial distribution of main explanatory variables, which are digitalization and credit access to support our empirical findings. Results show that overall the google trends’ portraits indicate adequate similarities in credit access, which declare the negative yet significant effect to growth. We also find interesting findings to be highlighted for internet access. Both google trends and empirical data show negative correlation between digitalization and credit access. From the standpoint of spatial spills-over effect, there is significant and positive spatial autocorrelation in internet access across districts in Indonesia. Applying spatial econometric model, two key factors appear to boost economic growth in the recovery period, which are digitalization and education-related variable. This article concludes that digitalization can not work itself. The inclusion of spills-over effect and spatial dependence across districts is needed to accelerate regional growth. Thus, from policy perspectives, our findings suggest that spatial-based policies by combining digitalization with human capital are more appropriate to boost growth performance in East Java.
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