Faculty of Economics and Business (FEB), Universitas Sebelas Maret (UNS), in collaboration with the Center for Fintech and Banking (UNS Fintech Center), organized a Guest Lecture entitled “Spatial Durbin Model and Spatial Autoregressive Model,” featuring Prof. Siong Hook Law from Universiti Putra Malaysia. The Guest Lecture, held on Friday, 31 October 2025, was attended by more than 20 participants, including master’s and doctoral students as well as lecturers from FEB UNS. This guest lecture in spatial analysis aims to enhance participants’ knowledge and understanding of analytical tools that may be applied in their theses and dissertations

Conducted in Room 4103 of the Bachtiar Effendi Building, FEB UNS, Prof. Law opened the discussion by explaining spatial heterogeneity and spatial dependence. These two aspects, he noted, form the foundation of why spatial-based analysis is essential. “When we conduct data analysis involving locational information, there is a theory stating that cities or regions located closer to each other are more dependent compared to two regions that are farther apart,” explained Prof. Law.

He further elaborated that spatial distance carries two implications: regions may have differing characteristics (heterogeneity) and they may also exhibit dependence. In this context, spatial econometrics aims to estimate and examine econometric models that cover multiple regions. The development of this analytical approach has progressed further alongside advancements in GIS.

The discussion on spatial analysis covered several subtopics, including distinctions among the Spatial Autoregressive Model (SAR), the Spatial Durbin Model (SDM), and the Spatial Error Model (SER). Prof. Law also introduced techniques for interpreting direct, indirect, and total effects, conducting diagnostic tests, and formulating policy implications. “In interpreting results, direct effects represent regional impacts, indirect effects reflect spillover effects from neighboring regions, and total effects refer to the combined influence of both direct and indirect effects,” explained Prof. Law.

Aside from the main material, Prof. Law conducted hands-on training using STATA to demonstrate the application of spatial analysis. He emphasized that spatial research offers significant implications, including identifying and formulating targeted interventions, supporting sustainable and inclusive development based on locational dynamics, and guiding coordination at national and regional levels.

The workshop concluded with a discussion session between Prof. Law and participants who are interested in applying spatial analysis in their theses and future research dissemination. This activity aligns with FEB UNS’s efforts to advance the Sustainable Development Goals (SDGs), particularly Goal 9 (Industry, Innovation, and Infrastructure), Goal 11 (Sustainable Cities and Communities), and Goal 17 (Partnerships for the Goals), through international academic collaboration and the enhancement of research capacity in spatial data analysis.