Page 34 - Contributed Paper Session (CPS) - Volume 2

CPS1409 Rahma F.

Figure 2 Histogram of Euclidian Distance between Regencies/Cities in East Java

Figure 3 Histogram of Delivery Cost between Regencies/Cities in East Java

3. Result
For each distance measures, the spatial weight of k (k = 2, ⋯ ,5) nearest
neighbours is defined, followed by the (global) Moran I test. The significance
of the spatial autocorrelation of GDP among the k (k = 2, ⋯ ,5) nearest
regencies/cities in East Java are presented in Table 3 and 4 respectively for the
physical – geographical Euclidian distance and the “economic” distance. The
significance of the test presented in those two tables indicates that the spatial
autocorrelation of GDP among the nearest regencies/cities in East Java is not
significant even the neighbours are extended up to 5 nearest neighbours, both
for the physical – geographical distance and the economic distance. This initial
result motivates this study to use another concept of distance to form the
neighbours, namely the critical cut off neighbours.

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