The Influence of Spatial Transformation on the Economic Growth of Aceh - Indonesia: A Spatial Econometric Model

Abstract

In the last decade, counties of Aceh Province was transformed into twenty three counties from ten. This tranformation implies to differencing on economic growth these counties between before and after transformation. finding out the conditional convergence economic growth when spatial effect is included. This research is developing in spatial econometrics study. This research is using descriptive statistical analysis; continue with Spatial Durbin Model (SDM) approach which is show significance pattern of the perfomance interpendence. Exploratory Spatial Data Analysis (ESDA) by using Statistical Analysis System (SAS) and Minitab Software. Generally, our results suggests conditional convergence economic growth after transformation among counties in Aceh when spatial effect is included.

Keywords: Growth, Conditional Convergence, Spatial Durbin Model