The Role of Economic Digitalization on Economic Performance in Indonesian
Abstract
Economic digitalization has an important role in improving the economic performance of a country. The purpose of this study is to analyze the effect of economic digitalization as measured by internet users, financial technology, electronic money, and electronic commerce on economic performance proxied using Gross Regional Domestic Product (GRDP) with a research focus on 34 Indonesian provinces during the 2019-2022 period. The method used in this study is a panel data regression model with secondary data sourced from BPS, OJK, and BI. So the best model is obtained, namely the Fixed Effect Model. Partially, the results showed that the internet users variable had a positive and significant effect on GRDP, financial technology had a negative and significant effect on GRDP, electronic money and electronic commerce variables had a negative and insignificant effect on GRDP. Simultaneously, the variables of internet users, financial technology, electronic money, and electronic commerce affect GRDP.
Downloads
Download data is not yet available.
References
Adu, C. A. (2016). Cashless policy and its effects on the nigerian economy. European Journal of Business, Economics and Accountancy, 4(2), 81–88.
Almeida, F., Santos, J. D., & Monteiro, J. A. (2020). The Challenges and Opportunities in the Digitalization of Companies in a Post-COVID-19 World. IEEE Engineering Management Review, 48(3), 97–103. https://doi.org/10.1109/EMR.2020.3013206
Arifin, M. Q. N., & Oktavilia, S. (2020). Analysis The Use of Electronic Money in Indonesia. Economics Development Analysis Journal, 9(4), 361–373. https://doi.org/https://doi.org/10.15294/edaj.v9i4.39934
Candy, Venessa, Zakhariah, C., & Vincent. (2022). The Utilization of Fintech to Increase Financial Inclusion in Indonesia: A Conceptual Paper. SEIKO : Journal of Management & Business, 5(1), 2022–2261. https://doi.org/10.37531/sejaman.v5i1.1616
Canover, R. S. P., & Kartikasari, D. (2021). Penetration of Imported Products on E-Commerce Platform in Indonesia and Strategies for Improving Local Product Competitiveness. International Journal of Economics, Business, and Accounting Research (IJEBAR), 5(1), 23–33. https://doi.org/10.29040/ijebar.v5i1.1328
Choi, C., & Yi, M. H. (2009). The effect of the Internet on economic growth : Evidence from cross-country panel data ☆. Economics Letters, 105(1), 39–41. https://doi.org/10.1016/j.econlet.2009.03.028
Delgado, M., Porter, M. E., & Stern, S. (2014). Clusters, Convergence, and Economic Performance. Research Policy, 43(10), 1785–1799. https://doi.org/10.1016/j.respol.2014.05.007
Dianari, R. G. F. (2018). Pengaruh E-Commerce Terhadap Pertumbuhan Ekonomi Indonesia. Bina Ekonomi: Majalah Ilmiah Fakultas Ekonomi Universitas Katolik Parahyangan, 22(1), 43–62. https://doi.org/10.26593/be.v22i1.3619.45-64
Dinari, R. G. F. (2018). Pengaruh E-Commerce Terhadap Pertumbuhan EkonomI. 22(1), 46–64. https://journal.unpar.ac.id/index.php/BinaEkonomi/article/view/3619/2806
Fitriyani, Hermawan, R., & Safitri, N. (2023). Relationship Between Electronic Money and Growth in Indonesia. International Journal of Educational Review, Law And Social Sciences, 3(1), 323–329. https://doi.org/https://doi.org/10.54443/ijerlas.v3i1.617
Halsmayer, V., & Hoover, K. D. (2016). Solow ’ s Harrod : Transforming macroeconomic dynamics into a model of long-run growth. The European Journal of the History of Economic Thought, 23(4), 561–596. https://doi.org/10.1080/09672567.2014.1001763
Heliyani, Tasri, E. S., Amelia, D., & Dwianda, Y. (2023). Economics Development Analysis Journal The Contribution of E-Commerce to Economic Growth in The Covid-19 Era Article Information. Economics Development Analysis Journal, 12(1), 129–140. https://doi.org/https://doi.org/10.15294/edaj.v12i1.58386
Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52–61. https://doi.org/10.1016/j.infoandorg.2018.02.004
Kartika, V. T., & Nugroho, A. B. (2015). Analysis on Electronic Money Transactions on Velocity on Money in ASEAN Countries. Journal of Business and Management, 1008–1020. http://journal.sbm.itb.ac.id/index.php/jbm/article/view/1807
Khiewngamdee, C., & Yan, H. (2019). The role of Fintech e-payment on APEC economic development. Journal of Physics: Conference Series. https://doi.org/10.1088/1742-6596/1324/1/012099
Kuznets, S. (1973). Modern Economic Growth: Findings and Reflections. The American Economic Review, 63(3), 247–258. https://www.jstor.org/stable/1914358
Leasiwal, T. C. (2013). The Analysis of Indonesia Economic Growth: a Study in Six Big Islands in Indonesia. Journal of Economics, Business, and Accountancy | Ventura, 16(1), 1–12. https://doi.org/10.14414/jebav.v16i1.121
Mankiw, N. G. (2010). Macroeconomics Seventh Edition. New Yoerk: Worth Publisher.
Millena, R., & Jesi, T. (2021). Jurnal Analisis Pendapatan Negara Indonesia Kota Bogor Provinsi Jawa Barat Dengan Metode Kuantitatif. Jesya (Jurnal Ekonomi & Ekonomi Syariah), 4(2), 1004–1009. https://doi.org/10.36778/jesya.v4i2.450
Molinillo, S., Cabanillas, F. L., & Sánchez, R. A. (2018). A social commerce intention model for traditional E-commerce sites. Journal of Theoretical and Applied Electronic Commerce Research, 13(2), 80–93. https://doi.org/10.4067/S0718-18762018000200107
Muhammad, M. (2021). Analisis Transaksi Pembayaran Non Tunai Terhadap Pertumbuhan Ekonomi Di Indonesia. Jurnal Ilmiah Mahasiswa FEB, 9(2). https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7721
Narayan, S. W. (2019). Does Fintech Matter for Indonesia’s Economic Growth? Buletin Ekonomi Moneter Dan Perbankan, 22(4), 437–456. https://doi.org/https://doi.org/10.21098/bemp.v22i4.1237
Nasution, E. Y. (2019). The Impact of E-Commerce Development on Conventional Merchants’ Income (case study: Medan central market). Journal of International Conference Proceedings (JICP), 2(3), 53–58. https://doi.org/10.32535/jicp.v2i3.642
Nursari, A. (2020). The Influence of Technology on Economic Growth in Indonesia in 2010-2020. https://ejurnalmalahayati.ac.id/index.php/jjmm/article/download/11259/7048%0A
Oktaviana, N., & Amalia, N. (2018). Gross Regional Domestic Product Forecasts Using Trend Analysis: Case Study of Bangka Belitung Province. Jurnal Ekonomi & Studi Pembangunan, 19(2), 142–151. https://doi.org/10.18196/jesp.19.2.5005
Parishev, A., Hristovski, G., Jolakoski, P., & Stojkoski, V. (2020). E-Commerce Impact on Economic Growth. 188–198. https://doi.org/10.47063/ebtsf.2020.0017
Purwanto, H., Yandri, D., & Yoga, M. P. (2022). Perkembangan Dan Dampak Financial Technology (Fintech) Terhadap Perilaku Manajemen Keuangan Di Masyarakat. Kompleksitas: Jurnal Ilmiah Manajemen, Organisasi Dan Bisnis, 11(1), 80–91. https://doi.org/10.56486/kompleksitas.vol11no1.220
Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002–1037. https://doi.org/https://doi.org/10.1086/261420
Rosiyana, R. N., Agustin, M., Iskandar, I. K., & Luckyardi, S. (2021). A New Digital Marketing Area for E- Commerce Business. International Journal of Research and Applied Technology, 1(2), 370–381. https://doi.org/10.34010/injuratech.v1i2.6765
Sadigov, S., Vasilyeva, T., & Rubanov, P. (2020). Fintech in economic growth: Cross-country analysis. Economic and Social Development: Book of Proceedings.
Salahuddin, M., & Gow, J. (2015). The effects of Internet usage , financial development and trade openness on economic growth in South Africa : A time series analysis and. TELEMATICS AND INFORMATICS. https://doi.org/10.1016/j.tele.2015.11.006
Sari, D. E., Selviana, E. A., Brilliani, Asila, N. F., & Jannah, M. (2022). The Effect of Financial Literature and Financial Technology on Financial Inclusion Among Accounting Student. International Journal of Social Science and Business, 6(3), 310–315. https://doi.org/10.23887/ijssb.v6i3.40508
Sassi, S., & Goaied, M. (2013). Financial development , ICT diffusion and economic growth : Lessons from MENA region. Telecommunications Policy, 37(4–5), 252–261. https://doi.org/10.1016/j.telpol.2012.12.004
Setiawan, T., & Augustine, Y. (2016). Etika Lingkungan Dan Kinerja Ekonomi Pada Ukuran Global Reporting Initiative-G4. Jurnal Akuntansi, 10(1), 23–40. https://doi.org/10.25170/jara.v10i1.37
Song, N., & Appiah-otoo, I. (2022). The Impact of Fintech on Economic Growth : Evidence from China. Sustainability, 14(10). https://doi.org/https://doi.org/10.3390/su14106211
Sumahir, G. N., Wahyudi, H., & Nirmala, T. (2022). The Effect of Research and Development (R&D) Investment, E-Commerce Company Employee, and E-Commerce Transaction Volume on Economic Growth in Indonesia 2010Q1 – 2020Q4. 1, 9–18. https://doi.org/https://doi.org/10.59001/pjeb.v1i2.9
Susilawati, Falefi, R., & Purwoko, A. (2020). Impact of COVID-19’s Pandemic on the Economy of Indonesia. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(2), 1147–1156. https://doi.org/10.33258/birci.v3i2.954
Tee, H. H., & Ong, H. B. (2016). Cashless payment and economic growth. Financial Innovation, 2(4), 1–9. https://doi.org/10.1186/s40854-016-0023-z
Terra, F. H. B., Filho, F. F., & Fonseca, D. (2021). Keynes on State and Economic Development. Review of Political Economy, 33(1), 88–102. https://doi.org/10.1080/09538259.2020.1823072
Todaro, M. P., & S. C, S. (2012). Economic Development (11th ed.). Addison-Wesley. http://eco.eco.basu.ac.ir/BasuContentFiles/57/57304a77- 1269-4081-bd5b-4c66b84b06a4.pdf
Toska, A., & Fetai, B. (2023). The Impact of E-Commerce on the Economic Growth of the Western Balkan Countries : A Panel Data Analysis. International Journal of Sustainable Development and Planning, 18(3), 935–941. https://doi.org/10.18280/ijsdp.180329
Wahab, N. A., Nayan, S., & Cheah, Y. K. (2020). Internet User and Economic Selected Southeast Asia Nations : A Panel Data Analysis. 8(3), 17–25. https://doi.org/https://doi.org/10.24191/jeeir.v8i3.8952
Wang, T., & Huang, L. (2018). An Empirical Study on the Relationship between Agricultural Science and Technology Input and Agricultural Economic Growth Based on E-Commerce Model. Sustainability, 10(12), 1–12. https://doi.org/10.3390/su10124465
Almeida, F., Santos, J. D., & Monteiro, J. A. (2020). The Challenges and Opportunities in the Digitalization of Companies in a Post-COVID-19 World. IEEE Engineering Management Review, 48(3), 97–103. https://doi.org/10.1109/EMR.2020.3013206
Arifin, M. Q. N., & Oktavilia, S. (2020). Analysis The Use of Electronic Money in Indonesia. Economics Development Analysis Journal, 9(4), 361–373. https://doi.org/https://doi.org/10.15294/edaj.v9i4.39934
Candy, Venessa, Zakhariah, C., & Vincent. (2022). The Utilization of Fintech to Increase Financial Inclusion in Indonesia: A Conceptual Paper. SEIKO : Journal of Management & Business, 5(1), 2022–2261. https://doi.org/10.37531/sejaman.v5i1.1616
Canover, R. S. P., & Kartikasari, D. (2021). Penetration of Imported Products on E-Commerce Platform in Indonesia and Strategies for Improving Local Product Competitiveness. International Journal of Economics, Business, and Accounting Research (IJEBAR), 5(1), 23–33. https://doi.org/10.29040/ijebar.v5i1.1328
Choi, C., & Yi, M. H. (2009). The effect of the Internet on economic growth : Evidence from cross-country panel data ☆. Economics Letters, 105(1), 39–41. https://doi.org/10.1016/j.econlet.2009.03.028
Delgado, M., Porter, M. E., & Stern, S. (2014). Clusters, Convergence, and Economic Performance. Research Policy, 43(10), 1785–1799. https://doi.org/10.1016/j.respol.2014.05.007
Dianari, R. G. F. (2018). Pengaruh E-Commerce Terhadap Pertumbuhan Ekonomi Indonesia. Bina Ekonomi: Majalah Ilmiah Fakultas Ekonomi Universitas Katolik Parahyangan, 22(1), 43–62. https://doi.org/10.26593/be.v22i1.3619.45-64
Dinari, R. G. F. (2018). Pengaruh E-Commerce Terhadap Pertumbuhan EkonomI. 22(1), 46–64. https://journal.unpar.ac.id/index.php/BinaEkonomi/article/view/3619/2806
Fitriyani, Hermawan, R., & Safitri, N. (2023). Relationship Between Electronic Money and Growth in Indonesia. International Journal of Educational Review, Law And Social Sciences, 3(1), 323–329. https://doi.org/https://doi.org/10.54443/ijerlas.v3i1.617
Halsmayer, V., & Hoover, K. D. (2016). Solow ’ s Harrod : Transforming macroeconomic dynamics into a model of long-run growth. The European Journal of the History of Economic Thought, 23(4), 561–596. https://doi.org/10.1080/09672567.2014.1001763
Heliyani, Tasri, E. S., Amelia, D., & Dwianda, Y. (2023). Economics Development Analysis Journal The Contribution of E-Commerce to Economic Growth in The Covid-19 Era Article Information. Economics Development Analysis Journal, 12(1), 129–140. https://doi.org/https://doi.org/10.15294/edaj.v12i1.58386
Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52–61. https://doi.org/10.1016/j.infoandorg.2018.02.004
Kartika, V. T., & Nugroho, A. B. (2015). Analysis on Electronic Money Transactions on Velocity on Money in ASEAN Countries. Journal of Business and Management, 1008–1020. http://journal.sbm.itb.ac.id/index.php/jbm/article/view/1807
Khiewngamdee, C., & Yan, H. (2019). The role of Fintech e-payment on APEC economic development. Journal of Physics: Conference Series. https://doi.org/10.1088/1742-6596/1324/1/012099
Kuznets, S. (1973). Modern Economic Growth: Findings and Reflections. The American Economic Review, 63(3), 247–258. https://www.jstor.org/stable/1914358
Leasiwal, T. C. (2013). The Analysis of Indonesia Economic Growth: a Study in Six Big Islands in Indonesia. Journal of Economics, Business, and Accountancy | Ventura, 16(1), 1–12. https://doi.org/10.14414/jebav.v16i1.121
Mankiw, N. G. (2010). Macroeconomics Seventh Edition. New Yoerk: Worth Publisher.
Millena, R., & Jesi, T. (2021). Jurnal Analisis Pendapatan Negara Indonesia Kota Bogor Provinsi Jawa Barat Dengan Metode Kuantitatif. Jesya (Jurnal Ekonomi & Ekonomi Syariah), 4(2), 1004–1009. https://doi.org/10.36778/jesya.v4i2.450
Molinillo, S., Cabanillas, F. L., & Sánchez, R. A. (2018). A social commerce intention model for traditional E-commerce sites. Journal of Theoretical and Applied Electronic Commerce Research, 13(2), 80–93. https://doi.org/10.4067/S0718-18762018000200107
Muhammad, M. (2021). Analisis Transaksi Pembayaran Non Tunai Terhadap Pertumbuhan Ekonomi Di Indonesia. Jurnal Ilmiah Mahasiswa FEB, 9(2). https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7721
Narayan, S. W. (2019). Does Fintech Matter for Indonesia’s Economic Growth? Buletin Ekonomi Moneter Dan Perbankan, 22(4), 437–456. https://doi.org/https://doi.org/10.21098/bemp.v22i4.1237
Nasution, E. Y. (2019). The Impact of E-Commerce Development on Conventional Merchants’ Income (case study: Medan central market). Journal of International Conference Proceedings (JICP), 2(3), 53–58. https://doi.org/10.32535/jicp.v2i3.642
Nursari, A. (2020). The Influence of Technology on Economic Growth in Indonesia in 2010-2020. https://ejurnalmalahayati.ac.id/index.php/jjmm/article/download/11259/7048%0A
Oktaviana, N., & Amalia, N. (2018). Gross Regional Domestic Product Forecasts Using Trend Analysis: Case Study of Bangka Belitung Province. Jurnal Ekonomi & Studi Pembangunan, 19(2), 142–151. https://doi.org/10.18196/jesp.19.2.5005
Parishev, A., Hristovski, G., Jolakoski, P., & Stojkoski, V. (2020). E-Commerce Impact on Economic Growth. 188–198. https://doi.org/10.47063/ebtsf.2020.0017
Purwanto, H., Yandri, D., & Yoga, M. P. (2022). Perkembangan Dan Dampak Financial Technology (Fintech) Terhadap Perilaku Manajemen Keuangan Di Masyarakat. Kompleksitas: Jurnal Ilmiah Manajemen, Organisasi Dan Bisnis, 11(1), 80–91. https://doi.org/10.56486/kompleksitas.vol11no1.220
Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002–1037. https://doi.org/https://doi.org/10.1086/261420
Rosiyana, R. N., Agustin, M., Iskandar, I. K., & Luckyardi, S. (2021). A New Digital Marketing Area for E- Commerce Business. International Journal of Research and Applied Technology, 1(2), 370–381. https://doi.org/10.34010/injuratech.v1i2.6765
Sadigov, S., Vasilyeva, T., & Rubanov, P. (2020). Fintech in economic growth: Cross-country analysis. Economic and Social Development: Book of Proceedings.
Salahuddin, M., & Gow, J. (2015). The effects of Internet usage , financial development and trade openness on economic growth in South Africa : A time series analysis and. TELEMATICS AND INFORMATICS. https://doi.org/10.1016/j.tele.2015.11.006
Sari, D. E., Selviana, E. A., Brilliani, Asila, N. F., & Jannah, M. (2022). The Effect of Financial Literature and Financial Technology on Financial Inclusion Among Accounting Student. International Journal of Social Science and Business, 6(3), 310–315. https://doi.org/10.23887/ijssb.v6i3.40508
Sassi, S., & Goaied, M. (2013). Financial development , ICT diffusion and economic growth : Lessons from MENA region. Telecommunications Policy, 37(4–5), 252–261. https://doi.org/10.1016/j.telpol.2012.12.004
Setiawan, T., & Augustine, Y. (2016). Etika Lingkungan Dan Kinerja Ekonomi Pada Ukuran Global Reporting Initiative-G4. Jurnal Akuntansi, 10(1), 23–40. https://doi.org/10.25170/jara.v10i1.37
Song, N., & Appiah-otoo, I. (2022). The Impact of Fintech on Economic Growth : Evidence from China. Sustainability, 14(10). https://doi.org/https://doi.org/10.3390/su14106211
Sumahir, G. N., Wahyudi, H., & Nirmala, T. (2022). The Effect of Research and Development (R&D) Investment, E-Commerce Company Employee, and E-Commerce Transaction Volume on Economic Growth in Indonesia 2010Q1 – 2020Q4. 1, 9–18. https://doi.org/https://doi.org/10.59001/pjeb.v1i2.9
Susilawati, Falefi, R., & Purwoko, A. (2020). Impact of COVID-19’s Pandemic on the Economy of Indonesia. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(2), 1147–1156. https://doi.org/10.33258/birci.v3i2.954
Tee, H. H., & Ong, H. B. (2016). Cashless payment and economic growth. Financial Innovation, 2(4), 1–9. https://doi.org/10.1186/s40854-016-0023-z
Terra, F. H. B., Filho, F. F., & Fonseca, D. (2021). Keynes on State and Economic Development. Review of Political Economy, 33(1), 88–102. https://doi.org/10.1080/09538259.2020.1823072
Todaro, M. P., & S. C, S. (2012). Economic Development (11th ed.). Addison-Wesley. http://eco.eco.basu.ac.ir/BasuContentFiles/57/57304a77- 1269-4081-bd5b-4c66b84b06a4.pdf
Toska, A., & Fetai, B. (2023). The Impact of E-Commerce on the Economic Growth of the Western Balkan Countries : A Panel Data Analysis. International Journal of Sustainable Development and Planning, 18(3), 935–941. https://doi.org/10.18280/ijsdp.180329
Wahab, N. A., Nayan, S., & Cheah, Y. K. (2020). Internet User and Economic Selected Southeast Asia Nations : A Panel Data Analysis. 8(3), 17–25. https://doi.org/https://doi.org/10.24191/jeeir.v8i3.8952
Wang, T., & Huang, L. (2018). An Empirical Study on the Relationship between Agricultural Science and Technology Input and Agricultural Economic Growth Based on E-Commerce Model. Sustainability, 10(12), 1–12. https://doi.org/10.3390/su10124465
Published
2024-08-28
How to Cite
ARVIANTI, Ratna; SULISWANTO, Muhammad Sri Wahyudi.
The Role of Economic Digitalization on Economic Performance in Indonesian.
Jurnal Ekonomi Kuantitatif Terapan, [S.l.], v. 17, n. 2, p. 237-257, aug. 2024.
ISSN 2303-0186.
Available at: <https://ojs.unud.ac.id/index.php/jekt/article/view/111545>. Date accessed: 21 nov. 2024.
Section
Articles
Certificate
