Applying spatial autocorrelation concept for pawnshop business insight
DOI:
https://doi.org/10.61511/emagrap.v4i1.2026.3476Keywords:
cluster-based business strategy, local spatial statistics, metropolitan financial geography, pawnshop business, spatial autocorrelationAbstract
Background: Pawnshop businesses play a strategic role in supporting financial inclusion and regional liquidity; however, nationally aggregated indicators may obscure substantial variations in business activity at finer geographical scales. Methods: This study examines the spatial patterns and geographic dependence of pawnshop business activity in the Jabodetabek metropolitan region from May 2024 to May 2025 using a combination of Local Moran’s I (LISA), Local Getis–Ord Gi*, and Local Geary’s C. Due to the absence of district transaction data, regency/municipality-level customer and loan totals from the Financial Services Authority (OJK) were disaggregated using population and land-area proxies from Statistics Indonesia (BPS). These proxy-based estimates were then analyzed within a GIS framework using a row-standardized spatial weight matrix to capture local spatial dependence. Findings: The results reveal a segmented spatial structure, characterized by strong customer and total-loan concentrations in Central Jakarta and Tangerang City, transitional and outlier patterns in surrounding areas, and a high-intensity corridor of average loan value per account (AL) in Bogor City and adjacent districts. Conclusion: The findings demonstrate that pawnshop business development should not rely solely on national or metropolitan averages but should adopt cluster-based and context-sensitive strategies for branch expansion, service optimization, and regional resource allocation. Novelty/Originality of this article: The originality of this study lies in integrating three complementary local spatial statistics at the district level to transform pawnshop indicators into geoeconomic business insights, while explicitly acknowledging that the proxy-derived values represent exploratory estimates that require further validation using branch- or transaction-level data.
References
Abdul Razak, A., & Asutay, M. (2022). Financial inclusion and economic well-being: Evidence from Islamic Pawnbroking (Ar-Rahn) in Malaysia. Research in International Business and Finance, 59. https://doi.org/10.1016/j.ribaf.2021.101557
Alsagr, N., & Apergis, N. (2025). Total climate change risk and banks’ loan portfolios: Fresh evidence and extensions. Journal of Environmental Management, 394. https://doi.org/10.1016/j.jenvman.2025.127460
An, M., Xu, W., Wang, X., He, W., Fang, X., Song, M., & Wang, B. (2025). Synergetic evolution of energy-economy-environment-society system: A case study of Chengdu-Chongqing urban agglomeration, China. Energy Strategy Reviews, 59. https://doi.org/10.1016/j.esr.2025.101755
An, S., Ahn, K., Bae, J., & Song, Y. (2024). Economic impacts of a subway system: Exploring local contexts in a metropolitan area. Research in Transportation Business and Management, 56. https://doi.org/10.1016/j.rtbm.2024.101188
Anderson, M. H., & Jackson, R. (2021). Option value and auto title loans. Journal of Economics and Business, 117. https://doi.org/10.1016/j.jeconbus.2021.106008
Aritenang, A. (2022). Examining Socio‐Economic Inequality Among Commuters: The Case of the Jakarta Metropolitan Area. Urban Planning, 7(3), 172–184. https://doi.org/10.17645/up.v7i3.5271
Badrudin, R., Fahlevi, M., Dahlan, S. P., Dahlan, O. P., & Dandi, M. (2025). Financial stress and its determinants in Indonesia: Exploring the moderating effects of digital knowledge, age, and gender. Journal of Open Innovation: Technology, Market, and Complexity, 11(2). https://doi.org/10.1016/j.joitmc.2025.100528
Baeza-González, S., & Kamakura, N. (2025). A methodological framework for tracing cluster life cycles: emerging hot spot analysis in evolutionary economic geography. Evolutionary and Institutional Economics Review. https://doi.org/10.1007/s40844-025-00314-5
Bahri, S., Suroso, A. I., Suhendi, & Sari, L. K. (2025). Examining Cash Usage Behavior in Metropolitan Greater Jakarta Societies. Societies, 15(5). https://doi.org/10.3390/soc15050120
Baltagi, B. H., & Shu, J. (2025). Spatial dynamic panel data model with interactive fixed effects and time-variant endogenous spatial weight matrices. Econometrics and Statistics. https://doi.org/10.1016/j.ecosta.2025.09.004
Bekturganova, M., & Kurmasheva, M. (2025). Structural Barriers and Opportunities for Financial Inclusion of Women in Kazakhstan. Eurasian Journal of Economic and Business Studies, 69(2), 19–33. https://doi.org/10.47703/ejebs.v69i2.492
Budiyanto, A., Lubis, I., Pamungkas, I. B., & Maulana, A. E. (2025). Technology Acceptance Model, Trust, And Financial Behavior In Shaping Consumer Well-Being: Insights From Fintech Adoption In Urban Indonesia. Innovative Marketing, 21(2), 197–210. https://doi.org/10.21511/im.21(2).2025.16
Che’Man, N. B., & Bin Jamaluddin, A. A. (2020). Measuring the Magnetic Impact of Economic Agglomeration for Industrial and Business Environment through Spatial Mapping. IOP Conference Series: Earth and Environmental Science, 540(1). https://doi.org/10.1088/1755-1315/540/1/012038
Chen, W., Li, G., & Liu, J. (2025). The impact of interest rate liberalization on loan pricing efficiency: Theory and evidence. International Review of Financial Analysis, 103. https://doi.org/10.1016/j.irfa.2025.104207
Cheruiyot, K. (2022). Detecting spatial economic clusters using kernel density and global and local Moran’s I analysis in Ekurhuleni metropolitan municipality, South Africa. Regional Science Policy and Practice, 14(2), 307–327. https://doi.org/10.1111/rsp3.12526
Choi, M., & Rocheteau, G. (2024). Foundations of market power in monetary economies. Journal of Economic Theory, 222. https://doi.org/10.1016/j.jet.2024.105931
Dai, Y., Du, S., & Min, H. (2023). Comparative Hotspot Analysis of Urban Living Environments and Transit-Oriented Development (TOD) Strategies: A Case Study of Beijing and Xi’an. ISPRS International Journal of Geo-Information, 12(11). https://doi.org/10.3390/ijgi12110446
Davis, C., & Hashimoto, K. ichi. (2022). Productivity growth, industry location patterns and labor market frictions. Regional Science and Urban Economics, 97. https://doi.org/10.1016/j.regsciurbeco.2022.103817
Delli Gatti, D., Gallegati, M., Palestrini, A., Tedeschi, G., & Vidal-Tomás, D. (2024). Market power, technical progress and financial fragility. Journal of Economic Behavior and Organization, 217, 435–452. https://doi.org/10.1016/j.jebo.2023.10.037
Deppner, J., & Cajias, M. (2024). Accounting for Spatial Autocorrelation in Algorithm-Driven Hedonic Models: A Spatial Cross-Validation Approach. Journal of Real Estate Finance and Economics, 68(2), 235–273. https://doi.org/10.1007/s11146-022-09915-y
Duan, K., & Zheng, C. (2024). Financial deepening does cause income growth of rural residents: Insights from the relationship between government and market in China. Heliyon, 10(10). https://doi.org/10.1016/j.heliyon.2024.e31601
Eliasson, K., & Westerlund, O. (2023). The urban wage premium and spatial sorting on observed and unobserved ability. Journal of Economic Geography, 23(3), 601–627. https://doi.org/10.1093/jeg/lbac029
Fitzpatrick, K. (2024). Non-bank credit and food hardship: The association between payday loans, pawn loans, rent-to-own contracts and food hardship in households with children. Children and Youth Services Review, 157. https://doi.org/10.1016/j.childyouth.2023.107418
Freedman, M., & Li, S. (2024). Introduction to the special issue on urban economics and the environment. In Regional Science and Urban Economics (Vol. 107). Elsevier B.V. https://doi.org/10.1016/j.regsciurbeco.2024.104012
Georg, I., Blaschke, T., & Taubenböck, H. (2023). Spatial delineation of urban corridors in North America: An approach incorporating fuzziness based on multi-source geospatial data. Cities, 133. https://doi.org/10.1016/j.cities.2022.104129
Gräser, M. (2025). Extracting Inequality: Barriers to Local Economic Development in Liberia’s Mining Sector. Extractive Industries and Society, 24. https://doi.org/10.1016/j.exis.2025.101751
Hasanah, U., & Qibtiyah, D. B. (2025). Pawnshop Marketing Strategies to Increase Customer Interest. Journal of Educational Management Research, 4(4), 1544–1557. https://doi.org/10.61987/jemr.v4i4.1147
Hassan, M. K., Alshater, M. M., Hasan, R., & Bhuiyan, A. B. (2021). Islamic microfinance: A bibliometric review. Global Finance Journal, 49. https://doi.org/10.1016/j.gfj.2021.100651
He, J., Zhang, Y., Zheng, D., & Wan, H. (2019). Financial deepening, inclusive finance and economic growth: Analysis based on endogenous growth theory. Journal of Physics: Conference Series, 1419(1). https://doi.org/10.1088/1742-6596/1419/1/012034
He, Q., & Niemeier, D. A. (2026). Lost opportunity? Social and spatial disparities in paycheck protection program loans to U.S. small businesses. Cities, 168. https://doi.org/10.1016/j.cities.2025.106441
Henderson, J. V., & Thisse, J. F. (2024). Urban and spatial economics after 50 years. Journal of Urban Economics, 144. https://doi.org/10.1016/j.jue.2024.103711
Hisham, S., Shukor, S. A., Salwa, A. B. U., & Jusoff, K. (2013). The Concept and Challenges of Islamic Pawn Broking (Ar-Rahnu). Middle East Journal of Scientific Research, 13(SPLISSUE), 98–102. https://doi.org/10.5829/idosi.mejsr.2013.13.1888
Hou, Y., Li, W., Wu, D., Zang, Y., & Quach, L. (2025). The spillover effect of US monetary policy on the international financial market: Evidence from network analysis. Journal of Management Science and Engineering, 10(1), 111–125. https://doi.org/10.1016/j.jmse.2024.12.001
Huggett, M., & Luo, W. (2023). Optimal income taxation: An urban economics perspective. Review of Economic Dynamics, 51, 847–866. https://doi.org/10.1016/j.red.2023.08.006
Hung, T. C., & Lin, C. Y. (2022). Key Sustainable Factors of the Pawnbroking Industry: An Empirical Study in Taiwan. Sustainability (Switzerland), 14(19). https://doi.org/10.3390/su141912669
Iddrisu, A. M., & Danquah, M. (2024). The financial inclusion agenda: Examining the role of conventional banks in deepening access to formal credit. Economic Systems, 48(2). https://doi.org/10.1016/j.ecosys.2024.101202
Janke, K., Lee, K., Propper, C., Shields, K., & Shields, M. A. (2023). Economic conditions and health: Local effects, national effect and local area heterogeneity. Journal of Economic Behavior and Organization, 214, 801–828. https://doi.org/10.1016/j.jebo.2023.07.003
Jin, X. (2018). Empirical Research on Spatial Diffusion Process of Knowledge Spillovers. IOP Conference Series: Earth and Environmental Science, 113(1). https://doi.org/10.1088/1755-1315/113/1/012086
Khan, Z., Wu, J., Khan, H., Amankwah-Amoah, J., Czinkota, M., & Zahoor, N. (2024). Exploring periphery–core dynamics in international management: A review, characterizations, and future research agenda. In European Management Journal (Vol. 42, Issue 5, pp. 653–657). Elsevier Ltd. https://doi.org/10.1016/j.emj.2024.07.004
Kim, Y. R., Williams, A. M., Park, S., & Chen, J. L. (2021). Spatial spillovers of agglomeration economies and productivity in the tourism industry: The case of the UK. Tourism Management, 82. https://doi.org/10.1016/j.tourman.2020.104201
Kotíková, S. (2023). Spillover effects: A challenging public interest to measure. National Accounting Review, 5(4), 373–404. https://doi.org/10.3934/NAR.2023022
Kuchiki, A. (2022). Linking spatial economics and sequencing economics for the Osaka tourism agglomeration. Regional Science Policy and Practice, 14(3), 610–626. https://doi.org/10.1111/rsp3.12476
Leong, K., Li, H., Pavanini, N., & Walsh, C. (2024). The effects of policy interventions to limit illegal money lending. Journal of Financial Economics, 159. https://doi.org/10.1016/j.jfineco.2024.103894
Liu, C., Zhang, Z., Li, A., & Zhang, L. (2026). Threshold effects of local government debt on economic growth: Evidence from 326 Chinese prefecture-level cities. Finance Research Letters, 88. https://doi.org/10.1016/j.frl.2025.109212
Liu, L. (2021). Analysis of spatial distribution characteristics of financial services industry clusters based on big data. E3S Web of Conferences, 275. https://doi.org/10.1051/e3sconf/202127501042
Liu, T., Yu, Y., Gong, D., & Guo, M. (2024). Geographic disparities in bank lending: Evidence from an auto loan market. Pacific Basin Finance Journal, 88. https://doi.org/10.1016/j.pacfin.2024.102573
Liu, Y., & Dong, C. (2025). Digital finance, social welfare investment, and urban–rural income inequality: Moderating role of regional economics and regional disparities. Finance Research Letters, 77. https://doi.org/10.1016/j.frl.2025.107077
Maduekwe, E., & de Vries, W. T. (2019). Random spatial and systematic random sampling approach to development survey data: Evidence from field application in Malawi. Sustainability (Switzerland), 11(24). https://doi.org/10.3390/SU11246899
Mago, S., & Modiba, F. S. (2022). Does informal finance matter for micro and small businesses in Africa? Small Business International Review, 6(1), e415. https://doi.org/10.26784/sbir.v6i1.415
Maket, I., Szakálné Kanó, I., & Vas, Z. (2024). Urban agglomeration and regional economic performance connectedness: Thin ice in developing regions. Research in Globalization, 8. https://doi.org/10.1016/j.resglo.2024.100211
Mohd Daud, S. N., Ahmad, A. H., & Trinugroho, I. (2024). Financial inclusion, digital technology, and economic growth: Further evidence. Research in International Business and Finance, 70. https://doi.org/10.1016/j.ribaf.2024.102361
Moral-Carcedo, J. (2024). Urban growth and stratification: The role of locational externalities. Cities, 152. https://doi.org/10.1016/j.cities.2024.105216
Nguyen, D. T. T., Diaz-Rainey, I., Roberts, H., & Le, M. (2021). Loans from my neighbours: East Asian commercial banks, financial integration, and bank default risk. International Review of Financial Analysis, 74. https://doi.org/10.1016/j.irfa.2021.101659
Okello, A., Onyango-Delewa, P., & Owot, G. M. (2025). Moderating Effect of Debt Literacy on the Link between Debt Management Behaviour and SME Growth Sustainability. International Journal of Finance and Accounting, 4(1), 120–147. https://doi.org/10.37284/ijfa.4.1.3093
Pang, Y., & Nie, D. (2025). Regional economic development level assessment based on K-means clustering algorithm. Procedia Computer Science, 262, 1137–1143. https://doi.org/10.1016/j.procs.2025.05.152
Pardue, R., & Shelton, T. (2025). Banks on a plane: The possibilities and limits of spatial accessibility measures for understanding geographies of financial exclusion. Environment and Planning A, 57(2–3), 325–345. https://doi.org/10.1177/0308518X241285282
Pasco, L. O., & Bendezu, H. R. (2024). Public Policies And Their Impact On Economic Development: A Systematic Review. International Journal of Professional Business Review, 9(11), e05068. https://doi.org/10.26668/businessreview/2024.v9i11.5068
Peng, H., & Qiu, Y. (2023). Impact of Financial Agglomeration on Regional Economic Growth in China: A Spatial Correlation Perspective. SAGE Open, 13(3). https://doi.org/10.1177/21582440231196347
Permana, D. (2023). Spatial Planning Policy in the Control Aspect of Urban Area Development. In International Journal of Science and Society (Vol. 5, Issue 2). https://doi.org/10.54783/ijsoc.v5i2.1089
Putra Cahyono, J. (2024). Agglomeration and Economic Growth: A Scoping Review of Socioeconomic Conflicts and Policy Implications. Global Economic, Social, and Development Review, 28(2), 12–21. https://doi.org/10.24123/gesdr.v28i2.7003
Rahman, M., & Mustafa, M. (2017). Financial deepening and stock market returns: panel data analyses for selected developed and developing economies. In Int. J. Monetary Economics and Finance (Vol. 10, Issue 1). https://doi.org/10.1504/IJMEF.2017.10002273
Rodríguez-Pose, A., & Sandu, A. (2025). Banking on trust: Institutional trust and the geography of financial exclusion in Central and Eastern Europe. Environment and Planning A, 57(7), 921–948. https://doi.org/10.1177/0308518X251350433
Rothenberg, A. D., Wang, Y., & Chari, A. (2025). When regional policies fail: An evaluation of Indonesia’s Integrated Economic Development Zones. Journal of Development Economics, 176. https://doi.org/10.1016/j.jdeveco.2025.103503
Sahputri, R. A. M., Sujarwoto, S., Sihombing, S., & Njoman, M. G. (2024). Financial Inclusion in Indonesia: An Analysis of Determinants of Bank Account Ownership and Credit Access at Individual and Regional Levels. Economics and Finance in Indonesia, 70(2), 81–96. https://doi.org/10.47291/efi.2024.06
Santoso, E., Ismail, M., Noor, I., & Ekawaty, M. (2019). Geographical Pattern of Economic Activities: An Evidence from Large and Medium Manufacturing Industries in Indonesia. IOP Conference Series: Earth and Environmental Science, 328(1). https://doi.org/10.1088/1755-1315/328/1/012038
Saraiva, C., & Caiado, J. (2025). Global development patterns: A clustering analysis of economic, social and environmental indicators. Sustainable Futures, 10. https://doi.org/10.1016/j.sftr.2025.100907
Sen, A., & Sensarma, R. (2026). Beyond borders: spillover effects of US monetary policy on the financial stress of emerging market economies. Journal of International Money and Finance, 161. https://doi.org/10.1016/j.jimonfin.2025.103500
Song, Y., & Cibin, A. (2024). Optimizing Spatial Weight Matrices in Spatial Econometrics: A Graph-Theoretic Approach Based on Shortest Path Algorithms: A New York City Application of Crime and Economic Indicators. International Review for Spatial Planning and Sustainable Development, 12(2), 181–200. https://doi.org/10.14246/IRSPSD.12.2_181
Su, M., & Zheng, Y. (2025). A legal study based on geographic methods: spatial and temporal differences and influencing factors in the construction level of China’s law-based government. Humanities and Social Sciences Communications, 12(1). https://doi.org/10.1057/s41599-025-05376-9
Tabarej, M. S., Minz, S., Shaikh, A. A., Shuaib, M., Jeribi, F., & Alam, S. (2024). Graph-Based Hotspot Detection of Socio-Economic Data Using Rough-Set. Mathematics, 12(13). https://doi.org/10.3390/math12132031
Trotta, A., Gallucci, C., Rania, F., Strano, E., & Tipaldi, R. (2026). The “black box” of digital finance: An umbrella review of the challenges and drawbacks in advancing financial inclusion. Research in International Business and Finance, 81. https://doi.org/10.1016/j.ribaf.2025.103188
Vithessonthi, C. (2023). The consequences of bank loan growth: Evidence from Asia. International Review of Economics and Finance, 83, 252–270. https://doi.org/10.1016/j.iref.2022.08.025
Wang, B., & Wang, W. (2025). Breaking barriers to rural entrepreneurship: How productive credit mitigates financial exclusion. Finance Research Letters, 86. https://doi.org/10.1016/j.frl.2025.108568
Wang, C., Zhou, T., & Ren, M. (2025). Spatial agglomeration patterns and co-agglomeration rules of agribusiness: From the perspective of industrial chain. Applied Geography, 179. https://doi.org/10.1016/j.apgeog.2025.103628
Wang, Y., Lv, W., Wang, M., Chen, X., & Li, Y. (2023). Application of improved Moran’s I in the evaluation of urban spatial development. Spatial Statistics, 54. https://doi.org/10.1016/j.spasta.2023.100736
Wang, Z., & Gao, Y. (2025). Tourism industry agglomeration, digital finance, and high-quality development of regional economy. Finance Research Letters, 85. https://doi.org/10.1016/j.frl.2025.108228
Wei, Y., Wang, M., Wei, X., Yuan, F., Fan, J., & Ba, S. (2024). Spatial patterns and influencing factors of financial agglomeration in Guangdong-Hong Kong-Macao Greater Bay Area. PLoS ONE, 19(8 August). https://doi.org/10.1371/journal.pone.0306301
Wójcik, D. (2025). Finance and economic geography: where does money come from and where is it going? Journal of Economic Geography. https://doi.org/10.1093/jeg/lbaf051
Xiao, J. J., Huang, J., Goyal, K., & Kumar, S. (2022). Financial capability: a systematic conceptual review, extension and synthesis. International Journal of Bank Marketing, 40(7), 1680–1717. https://doi.org/10.1108/IJBM-05-2022-0185
Xiong, W., He, D., & Du, H. (2025). Learning economic model predictive control via clustering and kernel-based Lipschitz regression. Journal of the Franklin Institute, 362(12). https://doi.org/10.1016/j.jfranklin.2025.107787
Yamada, H. (2024). Geary’s c for Multivariate Spatial Data. Mathematics, 12(12). https://doi.org/10.3390/math12121820
Yang, S., Qiu, Y., Cai, W., & Wang, D. (2025). Digital financial inclusion, environmental governance and household economic resilience. Finance Research Letters, 85. https://doi.org/10.1016/j.frl.2025.108214
Yang, X., Xia, Z., Song, J., & Liu, Y. (2024). Credit risk prediction for small and micro enterprises based on federated transfer learning frozen network parameters. Journal of Network and Computer Applications, 232. https://doi.org/10.1016/j.jnca.2024.104009
Yang, X., Xie, F., & Li, G. (2025). Spatial distribution of public service, spatial sorting, and labor market. Research in International Business and Finance, 75. https://doi.org/10.1016/j.ribaf.2025.102795
Yu, Z., Xiao, Z., Yan, Y., Feng, C. C., & Liu, X. (2023). The geographic disparity of agglomeration economies: Evidence from industrial activities in China’s emerging greater bay area. Applied Geography, 161. https://doi.org/10.1016/j.apgeog.2023.103128
Zheng, B., Lin, X., Yin, D., & Qi, X. (2023). Does Tobler’s first law of geography apply to internet attention? A case study of the Asian elephant northern migration event. PLoS ONE, 18(3 March). https://doi.org/10.1371/journal.pone.0282474
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Heri Purwadi, Sinta Ramadhania Putri Maresi, Andri Puji Prasetiyo
This work is licensed under a Creative Commons Attribution 4.0 International License.
