Local Indicators of Spatial Association (LISA) of Indonesian Workers Against Indonesian Economic Growth

Abstract

The ASEAN Economic Community which has taken place since 2015 has had an impact on the liberalization of labor flows towards Indonesia's economic growth. The large number of labor migration entering Indonesia will have an impact on the disruption of Indonesia's economic stability. Less employment in Indonesia encourages Indonesian workers to work abroad to seek high wages and welfare. This will worsen the condition of Indonesia's economic growth. The aim of this study is to analyze patterns of Local Indicators of Spatial Association (LISA) of Indonesian Workers against Indonesian Economic Growth.This research was conducted with a period of 2004-2015 or 12 years. Selection of a range of time periods is carried out by considering the limitations of the data used in the study. Samples of this study include the ASEAN member countries: Indonesia, Malaysia, The Philippines, Thailand, Singapore, Brunei, Vietnam, Laos, Myanmar, and Cambodia. Description of variables used per capita GDP (PDRBC), capital stock (capital), average length of school (RLS), life expectancy (AHH), workforce (L), Indonesian Workers (TKI), Foreign Workers (TKA). This study uses the Euclidean Distance approach to calculate the spatial weight matrix in calculating the Local Indicators of Spatial Association (LISA). The results of empirical research indicate that Indonesia's economic growth in 2004 and Indonesian economic growth in 2015 are located in quadrant III, LL (Low-Low) which shows that Indonesia as a country with a characteristic of low economic growth that interacts spatially with a country with low economic growth. Moran’s scatterplot portrays that Indonesian capital 2004 and 2015 are in the position of capital I, HH (High-High) which shows countries with high characteristics of capital interacting spatially with countries with high capital. The country in quadrant I is Indonesia. The results of empirical research show that Indonesia, which is originally in 2004 with a characteristic workforce that interacted spatially with a country with a large workforce, turns out that in 2015 it is photographed that Indonesia is with a workforce that has many spatial interactions with countries with low labor force.