THE IMPACT OF SPILLOVER LABOR ON THE ECONOMIC GROWTH OF CENTRAL JAVA PROVINCE WITH SPATIAL ECONOMETRICS MODEL APPROACH

The impact of human capital spill over which is manifested by the migration of foreign workers into Central Java Province, and the migration of Indonesian workers abroad is a form of labor mobility that occurs in Central Java Province. Central Java Province is one of the 34 provinces in Indonesia. Central Java Province has contributed to the labor mobility policy since the enactment of the ASEAN Economic Community. This study aims to analyze the impact of human capital of foreign workers on economic growth in Central Java Province. This research method uses spatial autoregressive model (SAR), spatial error model (SEM). The results of this study obtained that the results of the calculation of the SARfixed effect is known that there are spatial interactions and spatial effects in each of the 35 districts / cities studied. This is evidenced by the spatial lag coefficient (δ) = 0.83 or the spatial coefficient rho 0.83 showing the magnitude of the interaction of the value of the regency / city GRDP with the value of the neighboring regency / city. Spatial rho 8 percent means that if a district / city grows 8 percent it will affect 35 districts / cities with a correlation of productivity of 4 percent. The results of the SEMfixed effect calculation are known that there is a relationship of economic growth between 29 districts and 6 other cities.