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All Journal Jurnal BPPK : Badan Pendidikan dan Pelatihan Keuangan Jurnal Aplikasi Statistika & Komputasi Statistik
Ribut Nurul Tri Wahyuni
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Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Mathematics

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Journal : Jurnal Aplikasi Statistika

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The Impact of ICT on Regional Economy in Indonesia Through MSEs as Mediators: Application of Causal Mediation Analysis in Instrumental-variable Regressions Luthfio Febri Trihandika; Ribut Nurul Tri Wahyuni; Maghfiroh, Meilinda Fitriani Nur
Jurnal Aplikasi Statistika & Komputasi Statistik Vol 16 No 2 (2024): Jurnal Aplikasi Statistika & Komputasi Statistik
Publisher : Politeknik Statistika STIS

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.34123/jurnalasks.v16i2.791

Abstract

Introduction/Main Objectives: The development of information and communication technology (ICT) and small and micro enterprises (SMEs) can encourage regional economic growth. Background Problems: Studies on the impact of ICT on the rural economy at the village level are very limited. Furthermore, the Indonesian study neglects to tackle the endogeneity issue associated with this variable and the indirect effects of ICT on the regional economy. Novelty: Using SMEs as a mediator, this study examines the impact of ICT (internet signal strength) on the village's local economy (nighttime light), both directly and indirectly. ICT is considered to be endogenous. Research Methods: This study employs causal mediation analysis in instrumental-variable (IV) regressions at the village level in 2018 and 2021, using lightning strike intensity as IV. Finding/Results: Internet signal strength can increase the number of SMEs, and this increase can positively and significantly impact the local economy. In addition, the direct impact of internet signal strength on the local economy is significantly negative. However, the total impact of internet signal strength is significantly positive.
Co-Authors Luthfio Febri Trihandika Maghfiroh, Meilinda Fitriani Nur Yolanda Wilda Artati