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Access to Fintech and Poverty : Evidence from the Arrival of 4G Networks in Indonesia

Author

Listed:
  • Fatkhurrohman

    (University of Warwick)

Abstract

This paper investigates the effect of the arrival of 4G networks on poverty rates by exploiting the gradual adoption of 4G networks in 514 districts/cities in Indonesia. Robust differences-in-differences estimates indicate that 4G network adoption has a significant negative influence on poverty rates – which we argue is due to the increased access to Fintech afforded by the 4G network, thus increasing poor people's access to credit. Moreover, Fintech capitalizes on mobile app-based services, a vastly growing business that has gained popularity since 2015. In addition, this paper also finds that Fintech promotes internet-based job opportunities for impoverished individuals, increasing their income and alleviating poverty in Indonesia.

Suggested Citation

  • Fatkhurrohman, 2021. "Access to Fintech and Poverty : Evidence from the Arrival of 4G Networks in Indonesia," Warwick-Monash Economics Student Papers 24, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:24
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Fintech ; Financial Inclusion ; Poverty ; Welfare ; Indonesia JEL Classification: O33 ; O36 ; O53 ; I31 ; I32;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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