Social and economic convergence across districts in Indonesia: A spatial econometric approach

This paper evaluates social and economic convergence across 514 districts in Indonesia over the 2010-2018 period. By applying spatial panel-data methods, this paper re-examines the regional convergence hypothesis using a novel dataset on the human development index (HDI) and GDP per capita. These two indicators are used as proxies for social and economic progress, respectively. Results show a significant neighborhood effect on the convergence process in both indicators. Specifically, the performance of regional neighbors tends to accelerate the convergence speed of both HDI and GDP per capita.

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