The Role of Information and Communication Technology and Financial Inclusion on Inequality: Studies in ASEAN 4

Adiet Try Waluyo, Endang Martini, Restu Dion Febrianto

Abstract


This study examines the impact of Information and Communication Technology (ICT) and financial inclusion on income inequality in ASEAN-4 countries Indonesia, Malaysia, Thailand, and the Philippines between 2004 and 2020. Using annual panel data and employing the Panel Vector Autoregressive (PVAR) model, this research explores how ICT indicators (such as imports of ICT goods and internet usage) and a multidimensional financial inclusion index influence the Gini coefficient as a measure of inequality. The empirical results indicate that internet use and financial inclusion significantly reduce inequality, while ICT goods imports initially increase inequality due to unequal access. However, these effects demonstrate time-lag adjustments, highlighting that benefits from digital and financial infrastructure require conducive environments and behavioral readiness. The findings underscore the importance of synchronized ICT and financial policies to promote inclusive economic development. This study contributes to the literature by providing new empirical evidence on the dual roles of digital technology and financial access in addressing inequality in developing economies.


Keywords


ASEAN; financial inclusion; ICT; inequality

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DOI: https://doi.org/10.20961/bfde.v4i1.109686

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