Open AccessThe Effect of Financial Literacy and Financial Inclusion on Economic Growth in Indonesia
Author(s) -
Nurul Hidayatinnisa,
Fauziah Fauziah,
Shinta Maharani Trivena,
Yulis Nurul Aini
Publication year - 2021
Publication title -
jbmp: jurnal bisnis, manajemen dan perbankan/jbmp (jurnal bisnis, manajemen dan perbankan)
Language(s) - English
Resource type - Journals
eISSN - 2528-4649
pISSN - 2338-4409
DOI - 10.21070/jbmp.v7i2.1539
Subject(s) - financial inclusion , financial literacy , hausman test , inclusion (mineral) , test (biology) , economics , panel data , literacy , order (exchange) , financial system , finance , economic growth , financial services , fixed effects model , social science , econometrics , sociology , paleontology , biology
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.