Sustainable Economic Development and Digital Payments on Public Consumption Demand: Evidence from Indonesia

Binti Mindawati, Ris Yuwono Yudo Nugroho

Abstract


The COVID-19 outbreak has influenced Indonesia's economy and prompted an investigation. The study aims to assess the impact of sustainable economic development and digital payments on household consumption demand in Indonesia. It employs consumption theory, sustainable development theory, and digital payment systems. The study's independent factors include Gross Regional Domestic Product (GRDP), population density (PD), the Human Development Index (HDI), the Environmental Quality Index (EQI), electronic money (EM), debit cards, ATMs, and credit cards. The dependent variable is household consumption demand (CD). The data consists of a combined panel of annual data from 2020 to 2023 and cross-sectional data from 33 Indonesian provinces obtained from the Bank Indonesia and Central Bureau of Statistics websites. The research takes a quantitative approach and incorporates panel data analysis techniques. The data analysis techniques utilized are the Hausman Test, Heteroskedasticity Test, Correlation Test, Pesaran's CSD Test, FGLS Test, and PCSE Test. The findings suggest that sustainable economic development, as measured by GRDP, has a favorable and significant impact on household consumption. Population density has a favorable and considerable impact on household consumption. The HDI has a large negative impact on household consumption, whereas the household EQI has a positive and significant effect. Digital payments, particularly credit cards, have a favorable and considerable effect on household consumption. Improving health and education can increase people's awareness of a healthy lifestyle, reducing their consumption of unhealthy or unnecessary goods.

Keywords


Sustainable Economic Development; Digital Payment; Public Consumption

Full Text:

PDF

References


Alisjahbana, A. S. & Murniningtyas, E. (2018). Tujuan pembangunan berkelanjutan di Indonesia (2nd ed). Unpad Press.

Badan Pusat Statistik. (2020). Hasil Sensus Penduduk 2020. https://www.bps.go.id/id/pressrelease/2021/01/21/1854/hasil-sensus-penduduk--sp2020--pada-september-2020-mencatat-jumlah-penduduk-sebesar-270-20-juta-jiwa-.html

Badan Pusat Statistik. (2022). Pengeluaran untuk konsumsi penduduk Indonesia. Berdasarkan hasil Susenas Maret 2022. https://www.bps.go.id/id/publication/2022/10/20/b9e45d7c9aeb2112005aaf53/pengeluaran-untuk-konsumsi-penduduk-indonesia--maret-2022.pdf

Badan Pusat Statistik. (2022). Pertumbuhan ekonomi indonesia triwulan iv-2022. https://www.bps.go.id/pressrelease/2023/02/06/1997/ekonomi-indonesia-tahun-2022-tumbuh-5-31-persen.html

Badan Pusat Statitik. (2023). Pertumbuhan ekonomi indonesia triwulan iv-2023. https://www.bps.go.id/id/pressrelease/2021/02/05/1811/ekonomi-indonesia-2020-turun-sebesar-2-07-persen--c-to-c-.html

Baltagi, B. H. (2005). Econometric analysis of panel data. In John Wiley & Sons (Third). https://doi.org/10.3109/00498257509056115

Bank Indonesia. (2020). Fungsi Utama, Sistem Pembayaran dan Pengelolaan uang rupiah. https://www.bi.go.id/id/fungsi-utama/sistem-pembayaran/default.aspx

Bank Indonesia. (2023). Statistik sistem pembayaran dan infrastruktur pasar keuangan (SPIP). https://www.bi.go.id/id/statistik/ekonomi-keuangan/spip/Pages/SPIP-Desember-2023.aspx.

Demirgüç-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2022). The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of covid-19. In The Global Findex Database. https://www.worldbank.org/en/publication/globalfindex

Dumairy. (1996). Perekonomian Indonesia. Erlangga.

Geoffrey, H. (2005). National Income and The Environment. In J. R.

Vincent, K.G. and Maler (Ed.), Elsevier B.V (Vol. 3). Department of Forest Economics, 901 83 Umea, Sweden. https://doi.org/10.1016/S1574-0099(05)03022-6

Hoechle, D. 2007. Robust standard errors for panel regressions with crosssectional dependence. The stata journal, 7(3), 281-312.DOI:10.1177/1536867X0700700301

Keynes, J. M. (1937). The general theory of employment. Quarterly Journal of Economics, 51(2), 209–223. https://doi.org/10.2307/1882087

Li, J., Wu, Y., & Xiao, J. J. (2020). The impact of digital finance on household consumption: Evidence from China. Economic Modelling, 86, 317–326. https://doi.org/https://doi.org/10.1016/j.econmod.2019.09.027

Lin, B., & Shi, L. (2022). Do environmental quality and policy changes affect the evolution of consumers’ intentions to buy new energy vehicles. Applied Energy,310,118582.https://doi.org/https://doi.org/10.1016/j.apenergy.2022.118582.

Mangukiya, R. D., & Sklarew, D. M. (2023). Analyzing three pillars of sustainable development goals at sub-national scales within the USA. World Development Sustainability, 2, 100058. https://doi.org/https://doi.org/10.1016/j.wds.2023.100058

Parsaulian, B., Aimon, H., & Anis, A. (2013). Analisis konsumsi masyarakat di Indonesia. Jurnal Kajian Ekonomi, 1(2). https://ejournal.unp.ac.id/index.php/ekonomi/article/view/753/622

Purvis, B., Mao, Y., & Robinson, D. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability Science, 14(3), 681–695. https://doi.org/10.1007/s11625-018-0627-5

Saari, U. A., Damberg, S., Frömbling, L., & Ringle, C. M. (2021). Sustainable consumption behavior through the mediation of environmental concern and behavioral intention. Ecological Economics, 185, 107155. https://doi.org/10.1016/j.ecolecon.2021.107155

Samuelson, P. A. and William, D. N. (2002). Economics International Edition (17th ed). McGraw-Hill.

Sanusi, Y. A. (2008). Application of human development index to measurement of deprivations among urban households in Minna, Nigeria. Habitat International, 32(4), 384–398. doi:10.1016/j.habitatint.2007.11.009.

Sugiarto., Herlambang, T., Brastoro., Sidjana, R., & Kelana, S. (2005). Ekonomi Mikro. PT Gramedia Pustaka Utama.

Teoh, W. M. Y., Chong, S. C., Lin, B., & Chua, J. W. (2013). Factors affecting consumers’ perception of electronic payment: An empirical analysis. Internet Research, 23(4), 465–485. https://doi.org/10.1108/IntR-09-2012-0199

Wang, Z., & Huang, X. (2023). Understanding the role of digital finance in facilitating consumer online purchases: An empirical investigation. Finance Research Letters, 55, 103939. https://doi.org/https://doi.org/10.1016/j.frl.2023.103939


Refbacks

  • There are currently no refbacks.


ISSN (Print) 2086-1575       ISSN (Online) 2502-7115

View My Stats

google.png

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.