Abstract
Poverty is a phenomenon of spatial heterogeneity, which is usually indicated by the tendency of poor people to group in a certain area. It means that poverty is influenced by the spatial effect. Geographical conditions and economic inequality that occurred in various regions in Indonesia, especially East Java reinforced the reason for adding spatial effects in the analysis. In addition, as an effort to obtain an increasingly accurate model, poverty that occurs is highlighted in a period of time. The aim of this study is to determine the factors that influence the percentage of poor people according to regency/city in East Java province in 2012-2017 by a spatial data panel analysis. The best model for this case is Spatial Autoregressive (SAR) model using the concept of distance. It shows that poverty in East Java is related to spatial effect. Therefore, each regency/city has different constants, depending on its spatial weighting matrix. Thus, the percentage of poor people by Regency/City in East Java province was influenced by Human Development Index (HDI), Poverty Gap Index (P1), Poverty Severity Index (P2) and also the spatial effect.
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