The Effect of Financial Literacy and Financial Inclusion on Economic Growth in Indonesia

Nurul Hidayatinnisa' (State Polytechnic of Malang)
Fauziah Fauziah (State Polytechnic of Malang)
Shinta Maharani Trivena (State Polytechnic of Malang)
Yulis Nurul Aini (State Polytechnic of Malang)

JBMP (Jurnal Bisnis, Manajemen dan Perbankan)
Vol 7 No 2 (2021): September

Increasing financial literacy and inclusion become a global issue that are believed affecteconomic growth. However, in Indonesia, increasing financial literacy and inclusion inseveral provinces is not followed by the economic growth. The purpose of this research is toanalyze the effect of financial literacy and financial inclusion on economic growth inIndonesia.This study analyzed 34 provinces in Indonesia with 2 survey periods, 2016 and2019. The method of the data analysis used panel data regression with e-views 10 software.Moreover, Chow test and Hausman test are carried out to determine the best model. Theresults of the hypothesis test showed that financial literacy and financial inclusion have nosignificant effect on economic growth in Indonesia, neither partially or simultaneously. Itshowed that the financial literacy and inclusion improvement in Indonesia need to beenhanced in order to achieve inclusive growth as the main goal.