Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?

This research aims to prove the existence of a convergence process and analyse effect investment energy infrastructure on Sumatra Island by including element space understand spatial better. The dataset used in panel data consists 154 regions (district/municipality) from 2010 2020. analytical tools with econometric approach consist Spatial Autoregressive (SAR) Error Model (SEM). results test that there is both absolute conditional convergence, difference speed for two equations. Meanwhile, state are dependencies so neighbouring influence region. estimation β-convergence reveal government spending has positive significant effect, contrast infrastructure, which negative relationship, only human capital not Sumatra.