Analysis of Regional Economic Growth Disparities in Nusa Tenggara Barat Using The Heterogeneous Coefficient Spatial Durbin Panel Model

Analysis of Regional Economic Growth Disparities in West Nusa Tenggara Province Using the Heterogeneous Coefficient Spatial Durbin Panel Model

Abstrak

Welfare for all segments of society is one of the goals of sustainable development, yet it remains an unresolved issue. In general, economic variables are divided into two types: homogeneous and heterogeneous. Heterogeneous variables are more frequently encountered in daily life because the results of their calculations tend to vary. Economic inequality is an example of a heterogeneous variable. Therefore, the urgency of this research lies in the development of the Heterogeneous Coefficient Spatial Durbin Panel Model (HCSDPM), which integrates the heterogeneous coefficient structure of the Heterogeneous Coefficient Spatial Panel Model (HCSPM) with the spatial interaction framework of the Heterogeneous Coefficient Spatial Durbin Model (HSDM). This approach allows regression coefficients to vary across regions while accounting for both direct and indirect spatial effects. Consequently, the proposed HCSDPM model is expected to provide a more accurate and representative analysis of regional economic growth disparities. Nusa Tenggara Barat (NTB) is a region characterized by high levels of economic growth inequality, which even fluctuates greatly from year to year. Therefore, this study aims to determine the factors influencing economic growth and to identify spatial disparities across regions in NTB. The analysis results show that the model's goodness of fit is around 90%. Based on these findings, regional policymakers are encouraged to prioritize improving human resources and to comprehensively adjust fiscal and investment allocations to local needs.