European Journal of Accounting, Auditing and Finance Research (EJAAFR)

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Spatial Dimension of Regional Economic Growth in Sumatera Island


This study aims to examine and analyze the influence of economic growth determinants and economic growth spillover on the economic growth of the regencies/the cities in Sumatra Island. This study uses a quantitative analysis model of Moran’s I Global, Spatial Autoregressive Model (SAR) with weighted matrix of six and eight in the neighboring areas. The determinants of economic growth are explained by labor, human capital, catch-up technology, market potential, agricultural sector contribution, industrial sector and service sector. Based on the analysis of Moran’s I, the spatial dependence of economic growth between regencies/cities is significant in Sumatra Island. Based on SAR model, it is concluded that the spillover of economic growth, labor, contribution of agriculture sector, service sector and market potential have positive and significant influence; the contribution of industrial sector has positive but insignificant influence; while human capital and catch-up technology have negative and significant influence on the economic growth of a regency/city in Sumatra Island.

Keywords: : Human Capital, Catch-Up Technology, Contribution Of Agriculture Sector, Labor, Market Potential, Moran's I, Service Sector, Spatial Autoregressive Model (SAR), The Spillover Of Economic Growth

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