Causality between Financial Inclusion and Economic Development: Lesson from the Emerging Indonesia Economy

Asmalidar, Wahyu Ario Pratomo

2019

Abstract

Our study aims to determine the causality between financial inclusion and economic development in Indonesia. This research uses the panel data set for 33 provinces from Indonesia for a period of 2013 to 2017. To estimate panel Granger Causality test, this study implements Pedroni’s cointegration test, and Panel Vector Auto Regression Model. This study finds that there is no significant causality relationship between the financial inclusion and economic development indicators. The results show that some indicators of economic developments such as income percapita and poverty have significant correlation to financial inclusion in Indonesia. Nevertheless, financial inclusion does not have an impact to economic development in Indonesia.

Paper Citation

in Harvard Style

Asmalidar. and Pratomo W. (2019). Causality between Financial Inclusion and Economic Development: Lesson from the Emerging Indonesia Economy. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 573-578. DOI: 10.5220/0009326805730578

in Bibtex Style

@conference{ebic19,
author={Asmalidar and Wahyu Ario Pratomo},
title={Causality between Financial Inclusion and Economic Development: Lesson from the Emerging Indonesia Economy},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={573-578},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009326805730578},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - Causality between Financial Inclusion and Economic Development: Lesson from the Emerging Indonesia Economy
SN - 978-989-758-498-5
AU - Asmalidar.
AU - Pratomo W.
PY - 2019
SP - 573
EP - 578
DO - 10.5220/0009326805730578