LESS INCLUSIVE GROWTH IN INDONESIA? THE UNINTENDED CONSEQUENCES OF INTERNET PENETRATION
Dublin Core
Title
LESS INCLUSIVE GROWTH IN INDONESIA? THE UNINTENDED CONSEQUENCES OF INTERNET PENETRATION
Subject
internet penetration, inclusive growth, poverty, inequality
Description
Separate studies on the impact of internet penetration on growth and per capita income levels, inequality, and poverty levels are still being discussed. Using data from 33 Indonesian provinces
between 2008 and 2020, this paper investigates whether internet penetration modulates economic growth by reducing inequality and poverty. The Two-Way Fixed Effect (TWFE) econometric model
was used. Two findings can be concluded from this paper. First, Indonesia's economic growth remains less inclusive, as evidenced by rising per capita income, which tends to reduce poverty but
not income inequality. Second, Indonesia's economic growth tends to be less inclusive as an unintended consequence of internet penetration. Although it strengthens the effect on poverty
reduction, on the other hand, the interaction of economic growth with internet penetration tends to exacerbate income inequality. Based on these findings, the study suggests that the government should improve advanced ICT skills and lower barriers to internet adoption, particularly for the less fortunate. The internet is expected to become a tool to achieve inclusive growth through expanding a newly established middle class instead of simply the economic transformation of the poor into nonpoor households under this policy.
between 2008 and 2020, this paper investigates whether internet penetration modulates economic growth by reducing inequality and poverty. The Two-Way Fixed Effect (TWFE) econometric model
was used. Two findings can be concluded from this paper. First, Indonesia's economic growth remains less inclusive, as evidenced by rising per capita income, which tends to reduce poverty but
not income inequality. Second, Indonesia's economic growth tends to be less inclusive as an unintended consequence of internet penetration. Although it strengthens the effect on poverty
reduction, on the other hand, the interaction of economic growth with internet penetration tends to exacerbate income inequality. Based on these findings, the study suggests that the government should improve advanced ICT skills and lower barriers to internet adoption, particularly for the less fortunate. The internet is expected to become a tool to achieve inclusive growth through expanding a newly established middle class instead of simply the economic transformation of the poor into nonpoor households under this policy.
Creator
Hidsal Jamil
Source
DOI: http://dx.doi.org/10.26418/jebik.v11i2.53871
Publisher
Univ. Tanjungpura
Date
31-08-2022
Contributor
Sri Wahyuni
Rights
P-ISSN : 2087-9954, E-ISSN: 2550-0066.
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) Univ. Tanjungpura 2022
Files
Collection
Citation
Hidsal Jamil, “LESS INCLUSIVE GROWTH IN INDONESIA? THE UNINTENDED CONSEQUENCES OF INTERNET PENETRATION,” Repository Horizon University Indonesia, accessed March 14, 2025, https://repository.horizon.ac.id/items/show/5980.