Journal of Applied Economics in Developing Countries
Vol 7, No 2 (2022): Journal of Applied Economics in Developing Countries

ANALYSIS OF THE INFLUENCE OF FINANCIAL DEVELOPMENT AND FINANCIAL INCLUSION ON ECONOMIC GROWTH

Luluis Zaqiyah (Faculty of Business and Economics, Universitas Sebelas Maret)
Hery Sulistyo Jati Nugroho Sriwiyanto (Faculty of Business and Economics, Universitas Sebelas Maret)



Article Info

Publish Date
30 Sep 2022

Abstract

The objective of this research is to analyze the influence of financial development, represented by credit/GRDP and MSME/GRDP credit, and financial inclusion, represented by the number of bank branches per 100,000 adult population and third-party funds per GRDP, on economic growth in 33 Indonesian provinces during the 2013-2017 period. The data in this study used 33 provinces in Indonesia. The method of analysis is the panel data method. The data panel is a combination of time series data and cross-sections. The cross-sectional data is processed by observing the same object in a different way and at different times. This study found that financial development had a significant positive effect based on credit / GRDP variables. meanwhile, the SMEs / GDP credit proceeds were found to be insignificant in economic growth. Financial inclusion has a negative and significant effect based on a variable number of offices. Bank branches per 100,000 adult population and DPK / GRDP at current prices. At the same time, the control variables collected were significant and positive capital, while the labor force was not significant.

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Journal Info

Abbrev

jaedc

Publisher

Subject

Economics, Econometrics & Finance

Description

FOCUS This journal focused on economics, business, and management in developing countries studies and presents developments through the publication of articles and research reports. SCOPE The Journal of Applied Economics in Developing Countries (JAEDC) specializes on Economics, Business, and ...