IDEAS home Printed from https://ideas.repec.org/a/idn/journl/v26y2023i2fp333-360.html
   My bibliography  Save this article

A New Economic Perspective: Understanding The Impact Of Digital Financial Inclusion On Indonesian Households Consumption

Author

Listed:
  • Alwahidin N

    (Institut Agama Islam Negeri Kendari)

  • Arlita Jufra

    (Institut Agama Islam Negeri Kendari)

  • Beti Mulu

    (Institut Agama Islam Negeri Kendari)

  • Kiki Novita Sari

    (Institut Agama Islam Negeri Kendari)

Abstract

The fifth wave of the Indonesian Family Life Survey (IFLS), conducted in 2014, is used to compile the cross-sectional data for this study. Information on household consumption on a per-person basis is used. This study investigates how people’s access to digital financial services influences their discretionary spending in Indonesia.We find that household spending increased alongside internet penetration. Our research suggests that low and middle-income families benefit the most from the accessibility to and convenience of digital finance. We conclude that digital banking positively affects consumer spending due to factors such as higher earnings, more opportunities for investment, less friction during financial transactions, higher levels of security, and looser liquidity requirements.

Suggested Citation

  • Alwahidin N & Arlita Jufra & Beti Mulu & Kiki Novita Sari, 2023. "A New Economic Perspective: Understanding The Impact Of Digital Financial Inclusion On Indonesian Households Consumption," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 333-360, May.
    • Handle: RePEc:idn:journl:v:26:y:2023:i:2f:p:333-360
    DOI: https://doi.org/10.59091/1410-8046.2070
    as

    Download full text from publisher

    File URL: https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=2070&context=bmeb
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.59091/1410-8046.2070?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Household consumption; Digital financial inclusion; Mediating effect; Indonesian family life survey (IFLS); Internet usage index;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:journl:v:26:y:2023:i:2f:p:333-360. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.