Do Growth Spillovers Matter?
Abstract
Although the Yogyakarta Special Region and Central Java are two independent provinces with different regulations, these economies were integrated as a unity that interacts with each other, so this study examined whether the growth spillovers between regencies/cities occurred in these provinces. The data included economic growth, education, working-age population, and asphalted road published by the Central Bureau of Statistics for 2001-2018. This study used a regression analysis based on the Dynamic Ordinary Least Square (DOLS) model. The results showed that there were growth spillovers. The economic growth of a regency/city was positively influenced by economic growth in its surrounding regions. A particular regency/city obtained benefit from economic growth occurred in its surrounding. Meanwhile, an increase in the working-age population and the asphalted road positively affects economic growth. However, the increase in education did not affect economic growth. Therefore, the local government needs to improve connectivity between regions by building road networks and enhancing intergovernmental cooperation.
JEL Classification: J6, O1, R1
How to Cite:
Susanto, J., & Udjianto, D. W. (2021). Do Growth Spillovers Matter?. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 31-50. doi: http://doi.org/10.15408/sjie.v9i2.17900.
Keywords
References
Abreu, M., de Groot, H., & Florax, R. (2005). A Meta-Analysis of Beta-Convergence: The Legendary Two-Percent. Journal of Economic Surveys, 19(3), 389–420.
Ahmad, M. (2019). Globalisation, Economic Growth, and Spillovers: A Spatial Analysis. Margin The Journal of Applied Economic Research, 13(3), 255–276. https://doi.org/10.1177/2347631119841257
Arbia, G., Battisti, M., & Di Vaio, G. (2010). European, Institutions and geography: Empirical test of spatial growth models for regions. Economic Modelling, 27(1), 12–21.
Arize, A. C., Malindretos, J., & Ghosh, D. (2015). Purchasing power parity-symmetry and proportionality: Evidence from 116 countries. International Review of Economics & Finance, 37(C), 69–85.
Blaga, P., & Jozsef, B. (2014). Human Resources, Quality Circles and Innovation. Procedia Economics and Finance, 15(December 2014), 1458–1462. https://doi.org/10.1016/s2212-5671(14)00611-x
Bosker, M., & Garretsen, H. (2009). Economic development and the geography of institutions. Journal of Economic Geography, 9(3), 295–328.
Del Bo, C., Florio, M., & Manzi, G. (2010). Regional Infrastructure and Convergence: Growth Implications in a Spatial Framework. Transition Studies Review, 17(3), 475–493. https://link.springer.com/article/10.1007/s11300-010-0160-4
Du, D., & Lew, A. A. (2014). Tourism and Economic Growth. Journal of Travel Research, 55(4), 454–464. https://doi.org/10.1177/0047287514563167
Ehigiamusoe, K. U., & Hooi, L. H. (2018). Do Economic and Financial Integration Stimulate Economic Growth? A Critical Survey, Kiel Institute for the World Economy (IfW) (No. 2018–51).
Gerguri, S. ;, & Ramadani, V. (2010). The Impact of Innovation into the Economic Growth (MPRA Paper No. 22270).
Griffith, R., Redding, S., & Van Reenen, J. (2003). R&D and absorptive capacity: theory and empirical evidence. Scandinavian Journal of Economics, 105(1), 99-118.
Halpern, L., & Muraközy, B. (2007). Does distance matter in spillover? The Economics of Transition, 15(4), 781–805.
Hanif, N., & Arshed, N. (2016). Relationship between school education and economic growth: SAARC countries. International Journal of Economics and Financial Issues, 6(1), 294–300.
Ho, C. Y., Wang, W., & Yu, J. (2013). Growth spillover through trade: A spatial dynamic panel data approach. Economics Letters, 120, 450–453.
Kefela, G. T. (2010). Knowledge-Based Economy and Society Has Become a Vital Commodity to Countries. International Journal of Educational Research and Technology, 1(2), 68–75.
König, M. D., Battiston, S., Napoletano, M., & Schweitzer, F. (2011). Recombinant Knowledge and The Evolution of Innovation Networks. Journal of Economic Behavior and Organization, 79(3), 145–164. https://doi.org/10.1016/j.jebo.2011.01.007
Laksono, H., Rustiadi, E., & Siregar, H. (2018). Spillover Spasial Negatif Pertumbuhan Ekonomi Antar Kabupaten/Kota Di Provinsi Jawa Timur. Tataloka, 20(3), 266. https://doi.org/10.14710/tataloka.20.3.266-277
Liao, L., Du, M., Wang, B., & Yu, Y. (2019). The impact of educational investment on sustainable economic growth in Guangdong, China: A cointegration and causality analysis. Sustainability (Switzerland), 11(3). https://doi.org/10.3390/su11030766
Mairesse, J., & Mohnen, P. (2005). The Importance of R&D for Innovation: A Reassessment Using French Survey Data. The Journal of Technology Transfer, Springer, Vol., 30(2_2), 183–197.
Niewiadomski, P., & Pawlak, N. (2016). Analysis of Raw Material Participation in the Production Process. Part II, Practical Aspects. Research in Logistics and Production, 6(1), 71–78. https://doi.org/10.21008/j.2083-4950.2016.6.1.7
Pauw, J. B. de, Gericke, N., Olsson, D., & Berglund, T. (2015). The Effectiveness of Education for Sustainable Development. Sustainability, 7(11), 15693–15717. https://doi.org/10.3390/su71115693
Petrović, B., & Krstić, B. (2012). The Role Of Knowledge Management In Increasing Enterprise’s Innovativeness. FACTA UNIVERSITATIS - Economics and Organization, 9(1), 93–110.
Puspitasari, M., Nurmalasari, V., & Sjafii, A. (2011). Investigating Economic Growth Impact on Poverty Reduction in East Java: Does Spatial Matter? Majalah Ekonomi, 21(1), 1–12. https://doi.org/10.2139/ssrn.2088730
Ramos, R., Suriñach, J., & Artís, M. (2009). Human Capital Spillovers and Regional Economic Growth in Spain. Research Institute of Applied Economics, 1–19. https://doi.org/10.1111/j.1435-5957.2010.00296.x
Rizk, R. (2019). Does demographic transition matter for economic growth? Evidence from Egypt. The Journal of North African Studies, 24(6), 1012–1035.
Rodrik, D., Subramanian, A., & Trebbi, F. (2004). Institutions rule: the primacy of institutions over geography and integration in economic development. Journal of Economic Growth, 9(2), 131–165.
Rosenthal, S. S., & Strange, W. C. (2008). The Attenuation of Human Capital Spillovers. Journal of Urban Economics, 64(2), 373–389. https://doi.org/10.1016/j.jue.2008.02.006
Scarpetta, S., & Tressel, T. (2002). Productivity and Convergence in a Panel of OECD Industries: Do Regulations and Institutions Matter? (No. 342).
Taty, S., Possumah, B. T., & Razak, R. I. (2017). Human Capital Competitiveness in ASEAN Economic Community (AEC): The Role of Regulation, Indonesia Experiences. American Journal of Applied Sciences, 14(2), 267–273. https://doi.org/10.3844/ajassp.2017.267.273
Thuku, G. ., Paul, G., & Almadi, O. (2013). The Impact of Population Change on Economic Growth in Kenya. International Journal of Economics & Management Sciences, 02(06), 43–60. https://doi.org/10.4172/2162-6359.1000137
Veneri, P., & Ruiz, V. (2015). Urban to Rural Population Growth Linkages: Evidence from OECD TL3 Regions. Journal of Regional Science, 56(1), 3–24.
Winters, J. V. (2010). Human Capital Externalities and Employment Differences across Metropolitan Areas of the U.S. (MPRA Paper No. 22434).
Yang, F., Pan, S., & Yao, X. (2016). Regional convergence and sustainable development in China. Sustainability (Switzerland), 8(2), 1–15. https://doi.org/10.3390/su8020121
DOI: 10.15408/sjie.v10i1.17900
Refbacks
- There are currently no refbacks.
