Spatial Spillover Effect of East Java Economic Growth

The present study tries to examine the strategic role of East Java’s economic performance toward national level in spatial-based development. In spatial views, economics Java statistically significant improve growth neighboring area or provinces, and also support itself. methodology uses for consists two methods, that are Inter-Regional Input-Output (IRIO) Spatial Econometrics. First, IRIO analysis shows existing Spillover Effect Province. Next, authors if economy Province experiences positive growth, it will encourage output Island value added eastern Indonesia. Second, result SDM confirm spillover effect Economic confirms key boost district/cities Province, is not only influenced by region itself (local economy) but interactions with other regions (neighborhood neighbors). finds GDRP per capita determinants i.e., capital, share agriculture sector, manufacturing industry service sector local government spending have a on enhancing note necessary consider framework approach. One policy recommendations order strengthen Local Value Chain (LVC) sectors, especially encouraging inter-regional cooperation.