Proceedings of Bengkulu International Conference on Economics, Management, Business, and Accounting
Vol. 1 (2023): Proceeding Bicemba

Impact of Digital Payment on Economic Growth: Evidence from Indonesia

Dian Putri Maharani (Universitas Bengkulu)
Naziha Romiza (Universitas Bengkulu)
Syauqi Irfan (Universitas Bengkulu)
Ratu Eva Febriani (Universitas Bengkulu)



Article Info

Publish Date
05 Dec 2023

Abstract

Innovations in the payment system that lead to non-cash payments (digital payment) can potentially impact output, prices, and monetary policy transmission that will be driving the economy faster. However, in its work, there is a conspicuous lack of the role of digital payments in encouraging economic activity, especially for an emerging economy like Indonesia. This research is aimed to evaluate the impact of digital payment on economic growth but also look at the influence of government spending and inflation as control variables on economic growth. In reviewing this empirical concept, a quantitative analysis is applied to assess the research construct by using a panel regression approach. The data used are sourced from Bank Indonesia and the Central Bureau of Statistics for the observation period from 2018 to 2021. Findings revealed the significance of each variable that represents a positive impact of digital payments and inflation on economic growth, while government spending harms economic growth.

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Journal Info

Abbrev

bicemba

Publisher

Subject

Economics, Econometrics & Finance

Description

The focus and scope of BICEMBA include Economics Development, Finance and Public Economics, Labor Economics, Blue and Green Economics Digital Economy and Behavioral Economics, E-Government and Governance, Macroeconomics Policy, International Trade, Creative Economics and Tourism, Food Security, ...