IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v16y2025i5d10.1007_s13132-024-02454-2.html
   My bibliography  Save this article

Asymmetric Impact of Digital Finance on Poverty and Income Inequality Using NARDL Approach: Evidence from Indonesia

Author

Listed:
  • Mohammad Tarique

    (Aligarh Muslim University Aligarh (AMU))

  • Zia Malik

    (Aligarh Muslim University Aligarh (AMU))

Abstract

The growing global demand for cellular devices and internet connection is a very significant advancement in promoting financial inclusion, changing the financial services environment in many low- and middle-income countries (LMICs). As per the World Bank report “Indonesia's Rising Divide,” there has been a rise in inequality inside the country. The wealthiest 20% of the population increased their spending from 45.98% in September 2022 to 46.71% in March 2023. The inequality is likely to culminate into the menace of poverty also. Using the asymmetrical NARDL model, the study determines how financial inclusion through digital finance has affected poverty and income inequality in Indonesia during the period 1999–2022. According to the findings, financial technology adoption can effectively lower rates of poverty and lessen income inequality over an extended period of time; nevertheless, the relationship is an asymmetrical one. So, there is a need to incentivize traditional financial institutions, and internet firms should augment digital financial goods and technology.

Suggested Citation

  • Mohammad Tarique & Zia Malik, 2025. "Asymmetric Impact of Digital Finance on Poverty and Income Inequality Using NARDL Approach: Evidence from Indonesia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(5), pages 16211-16236, November.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:5:d:10.1007_s13132-024-02454-2
    DOI: 10.1007/s13132-024-02454-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-02454-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-02454-2?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G50 - Financial Economics - - Household Finance - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

    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:spr:jknowl:v:16:y:2025:i:5:d:10.1007_s13132-024-02454-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.