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.

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

Tags

,Repository, Repository Horizon University Indonesia, Repository Universitas Horizon Indonesia, Horizon.ac.id, Horizon University Indonesia, Universitas Horizon Indonesia, HorizonU, Repo Horizon , ,Repository, Repository Horizon University Indonesia, Repository Universitas Horizon Indonesia, Horizon.ac.id, Horizon University Indonesia, Universitas Horizon Indonesia, HorizonU, Repo Horizon , ,Repository, Repository Horizon University Indonesia, Repository Universitas Horizon Indonesia, Horizon.ac.id, Horizon University Indonesia, Universitas Horizon Indonesia, HorizonU, Repo Horizon ,

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.