• M. Irfan Rosyadi
  • Sinta Yulyanti Universitas Islam Riau



Regional spollover effect, Gross Regional Domestic Product, Two-Stage Least Square, Eviews


The economic activities of one region can provide abundant economic growth for other areas. This research discusses the reciprocal relationship between economic growth in Pekanbaru City and economic growth in Siak Regency, Pelalawan Regency, and Kampar Regency. Using quantitative methods and secondary data from the Central Bureau of Statistics was analyzed using the Two-Stage Least Square method then regressed using the Eviews 10 application. The results showed a positive and significant reciprocal relationship at ? 0.05 between Pekanbaru city GRDP and Siak Regency GRDP. Coefficients 0.9626 and 1.0890. The expected effect of GRDP of Pekanbaru City and GRDP of Pelalawan Regency with a coefficient of 3.4663 and 0.2864 at ? 0.05. Whereas Kampar Regency only has a unidirectional relationship, namely, the GRDP of Pekanbaru City has a positive and significant effect on Kampar's GRDP with a coefficient of 0.9527 at ? 0.10. Apart from being caused by geographic conditions, this reciprocal influence is caused by leading sectors, including the pulp and paper processing industry, the oil and gas mining sector, and the oil palm plantation sector, which delegate economic activities between Siak Regency and Pelalawan Regency with Pekanbaru City. Meanwhile, GRDP Pekanbaru City and GRDP Kampar Regency only provide unidirectional spillover due to the dominance of the trade and construction sector in Pekanbaru City.


Adisasmita, R. (2008). Regional Development (Concept and Theory). First edition. Graha Ilmu.

Aghion, P., & Jaravel, X. (2015). Knowledge spillovers, innovation and growth. Economic Journal, 125(583): 533–573.

Aiyubbi, D. E., & Wijayanti, D. (2014). The Influence of Regional Spillover on the GRDP of the Special Region of Yogyakarta in 1996-2010. Business Aplications, 15(9): 1777–1798.

Salam, A.S., & Prishardoyo, B. (2018). The Influence of Human Capital Spillover Effects on Productivity of the Processing Industry in Kedungsepur Area. Economics Development Analysis Journal, 5(2): 226–234.

Arsyad, L. (2004). Introduction to Regional Economic Planning and Development]. BPFE Gajah Mada University.

Capello, R. (2009). Spatial spillovers and regional growth: A cognitive approach. European Planning Studies, 17(5): 639–658.

Carlino, G. A. (2001). Knowledge Spillovers: Cities’ Role in the New Economy. Business Review.

Ghozali, I., & Ratmono, D. (2017). Multivariate and econometric analysis. Publishing agency Diponegoro University.

Harahap, B. A., Bary, P., Nurliana, L., & Satyanugroho, R. (2015). The Impact of External Spillover Shock on the Indonesian Economy: A Global Var Approach. Working Paper Bank Indonesia, June.

Hirschman, A. (1984). A Dissenter´s Conffesion: “The Strategy of Economic Development” Revisited. Pioneers in Development, 1(1): 85–111.

Jaffe, A. B., Trajtenberg, M., & Fogarty, M. S. (2000). Knowledge Spillovers and Patent Citations: Evidence from a Survey of Inventors. American Economic Review, 90(2): 215–218.

Laksono, H., Rustiadi, E., & Siregar, H. (2018). Negative Spillover Spillover Economic Growth Between Regencies / Cities in East Java Province. Tataloka, 20(3): 266-277.

Li, F., & Li, G. (2018). Agglomeration and spatial spillover effects of regional economic growth in China. Sustainability (Switzerland), 10(12): 1–13.

Luo, X. (2005). Growth Spillover Effects and Regional Development Patterns: The Case of Chinese Provinces. World Bank Policy Research Working Paper, 1–29.

Ahmed, M. E. (2012). Are trade spillover effects on East Asian economic growth productivity driven? World Journal of Entrepreneurship, Management and Sustainable Development, 8(4): 246–259.

Seif, A. M., Panahi, H., & Razi, D. H. (2017). Regional Economic Growth and Spatial Spillover Effects in MENA Area. Iran. Econ. Rev, 21(4): 765–787.

Suparta, I. W. (2009). Spillover Effect of the Economy of DKI Jakarta Province and South Sumatra on the economic growth of Lampung Province. Journal of Development Economics, 10(1): 32–48.

Todaro, M. P., & Smith, S.C. (2013). Economic Development (Translated By adi Maulana & N. I. Sallama). 11th ed. Erlangga Publisher.

Wibisono, P., & Kuncoro, M. (2015). Spillover Effects of Inter-Regency / City Growth in East Java Province 2001 - 2013. Indonesian Journal of Economics and Development, 16(1): 31–46.

Widarjono, A. (2018). Introductory econometrics and its application with eviews guide]. 5th ed. Publisher UPP STIM YKPN.




How to Cite

Irfan, M. ., & Yulyanti, S. (2020). THE EFFECT OF REGIONAL SPILLOVERS ON ECONOMIC GROWTH IN PEKANBARU CITY, RIAU PROVINCE, INDONESIA. International Journal of Economics Development Research (IJEDR), 1(3), 186–199.