ANALYSIS OF THE INFLUENCE OF FINANCIAL DEVELOPMENT AND FINANCIAL INCLUSION ON ECONOMIC GROWTH (STUDY IN 33 INDONESIAN PROVINCES FOR THE 2013-2017 PERIOD)

Luluis Zaqiyah, Hery Sulistyo Jati N S, Riayati Ahmad

Abstract


This research was conducted with the aim of 1) Analyzing financial development with variable credit / GRDP and MSME / GRDP credit. 2) Analyze the effect of inclusion with bank branch variables per 100,000 adult population representing the dimensions of access. Third-party funds per GRDP represent the dimensions of use on economic growth in Indonesia in the Indonesian province in 2013-2017. 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.

 

Keywords: Financial Development; Financial Inclusion; Economic Growth


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DOI: https://doi.org/10.20961/aedc.v7i2.79433

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