Journal of Socioeconomics and Development
Vol 4, No 2 (2021): October

Information and communication technology, inequality change and regional development in Indonesia

Chusnul Faizah (Department of Economics, Faculty of Economics and Business, Brawijaya University)
Kyohei Yamada (Graduate School of International Relations, International University of Japan)
Devanto Shasta Pratomo (Department of Economics, Faculty of Economics and Business, Brawijaya University, Malang)



Article Info

Publish Date
01 Oct 2021

Abstract

Although the advancement of technology provides numerous opportunities to boost economic growth and development, equal distribution may not be guaranteed. Thus, this study seeks further elaboration as to whether ICT development has a role to play in the inequality in Indonesia. Using municipal level data from 2018, the study provides both linear and non-linear models to be estimated using OLS and 2SLS. Major findings include: (i) the availability of basic ICT infrastructure is strongly linked to the reduction of inequality; (ii) the actual ICT use is positively associated with inequality, albeit at a diminishing rate, revealing a non-linear relationship similar to Kuznets' curve; (iii) the ICT skill variable comprising the education level has direct correlation with ICT use instead of inequality, with an additional score on ICT skill being associated with an increase in ICT use; (iv) the relationship between ICT use and inequality differed depending on the level of economic development, with lower-income regions experiencing the inverted U-shaped relationship as in the original Kuznets curve and higher-income regions experiencing the U-shaped curve.JEL Classification:  D63; I24; O10

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Journal Info

Abbrev

jsed

Publisher

Subject

Agriculture, Biological Sciences & Forestry Arts Humanities Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Journal of Socioeconomics and Development (JSeD) is managed by The Study Program of Socioeconomics (Agribusiness), Agriculture Faculty, Widyagama University of Malang. JSeD is published biannually in April and October, and available in printed and online version. ...