The relationship between economic growth and e-commerce at the beginning of covid-19 pandemic in east Java

Abstract

The purpose of this study is to analyse the simultaneous spatial relationship between economic growth and e-commerce as well as the spillover effect between the two variables in East Java at the beginning of the Covid-19 pandemic in 2020. To answer the research objectives, spatial simultaneous modeling is used with the Spatial Autoregressive Generalized Spatial Three Model. Stage Least Square (SAR-GS3SLS) using rook contiguity. Based on the results of the SAR-GS3SLS, it can be concluded that at the beginning of the Covid-19 pandemic in 2020 in East Java, economic growth and e-commerce were simultaneously spatially interconnected. Variables that affect East Java's economic growth are e-commerce activities, the number of villages that have Base Transceiver Stations (BTS) and the spatial lag of economic growth (ρ1) while the open unemployment rate (TPT) and the Gini ratio have no significant effect on growth. economy. Variables that affect e-commerce are economic growth, internet banking users, percentage of population who have cellphones, number of millennials, number of villages that have ATMs and spatial lag of e-commerce (ρ2) while the number of villages with 4G/LTE signals has no effect on e-commerce. commerce. Regencies/cities that provide the highest spillover of economic growth and e-commerce in East Java are Malang, Mojokerto and Madiun Regencies. The three districts were able to provide a positive net spillover.