The Effect of Sharia Financial Inclusion on Indonesian Economic Growth

Asyifa Nur Azizah, Delvi Delviana Saragi, Yasmin Putri Derin Tsa

Abstract


Financial Inclusion has a role to play in driving economic growth. This study aims to identify and analyze the influence of Islamic banking inclusion in driving economic growth. This study uses a descriptive quantitative method with a literature survey. The data used is secondary data from Sharia Banking Statistics obtained from OJK web and Indonesian Statistics from BPS Web with annual data series from 2011-2020. The results of the study found that together indicators of sharia banking inclusion statically affect economic growth. But when viewed partially, only accessibility indicators statistically have a positive effect on economic growth. Simultaneously, the indicator of usability, although statistically significant but not according to a thesis that has quality indicators, is statically proven to be independent of economic growth. This means that even if people can access sharia banking services, it does not necessarily increase economic growth that will have implications for the community's welfare.

Full Text:

PDF

References


Adriani Diana, First Bgs Wiksuana. 2018. "COMMUNITIES IN BALI PROVINCE, Faculty of Economics and Business, University of Udayana (Unud), Bali, Indonesia Accelerated Economic Growth Has Served as a Strategic Condition for Improving the Quality of People's Life, But Economic Growth Does Not." 7 (12): 6420–44.

Anwar, K., Economics and Business, Syiah Kuala University, F., & Development, Faculty of Economics and Business, Syiah Kuala University Banda Aceh, E. (2017). The Effect of Financial Inclusion on Indonesia's GDP. August, 2 (3), 454–462.

Watch it, Erni. 2018. "ANALYSIS OF THE EFFECT OF FINANCIAL INCLUSION ON FINANCIAL SYSTEM STABILITY IN DEVELOPING COUNTRIES IN ASIA TENGGARA AREA ABSTRACT." Economics Journal of Airlangga University, August 2017.

Generous, Tomi. 2019. "Finance on the Performance and Sustainability of Umkm (Studies on Micro-Business Actors of Brawijaya University Students)." Thesis.

Economics, Journal, and Development Policy. 2012. Journal of Economics and Development Policy 1 (2): 111–35.

Harhara, A Donny. 2009. "NONLINIER WITH OLS METHOD (ORDINARY LEAST SQUARE) AND GLS (GENERALIZED LEAST SQUARE) METHOD."

Herdinata, Christian, and D Fransisca Pranatasari. 2019. "Guide to Financial Technology Implementation Through Regulation, Collaboration, and Financial Literacy at MSMEs." Leutika Press.

Iko Putri Yanti, Wira. 2019. "The Effect of Financial Inclusion and Financial Literacy on Umkm Performance in North Moyo District." Journal of Management and Business 2 (1).

Iramayasari, Adry. (2020). The Effect of Financial Inclusion on Financial System Stability and Economic Growth in ASEAN. Journal of Economic and Development Studies. 2 (1): 161-176.

Kompas.com. (2017,24 January).OJK: Indonesia's Financial Literacy and Inclusion Index Increases. Accessed on 10 March 2021 from, https://money.kompas.com/read/2017/01/24/180000626/ojk.indeks.literasi.dan.inclusi.keuangan.indonesia.increased

Meyliana, D., & Mulazid, US (2017). The Influence of Gross Domestic Product (GDP), Total Profit Sharing and Number of Offices on the Total Time Deposit of Islamic Bank Muḍārabah in Indonesia for the 2011-2015 Period. Economica: Journal of Islamic Economics, 8 (2), 263–283. https://doi.org/10.21580/economica.2017.8.2.1442

Mishkin, F. 2008. In The Economic of Money, Banking, and Financial Markets 8th Edition. NewJersey: Pearson Education, Inc.

Ningrum, Dewi Kustika. 2018. "Economic Growth, Poverty and Inequality in East Java 2011- Period." Student Scientific Journal of FEB Universitas Brawijaya 6 (1): 1–16.

Financial Fervices Authority. (2018). Indonesian Banking Statistics 2017. Ojk, 16, 1–192. https://www.ojk.go.id/id/kanal/perbank/data-dan-statistik/statistik-perbank-indonesia/Pages/Statistik-Perbankan-Indonesia---Desember-2017.aspx

Financial Fervices Authority. 2020. Press Release: OJK Increases Financial Inclusion to Accelerate National Economic Recovery. Accessed on 5 October 2020. https://www.ojk.go.id/id/berita-dan-kaktif/siaran-pers/Pages/S Broadcast-Pers-OJK-T Increase-Inklusi-Keuangan-Percepat-PemulihanEkonomi-Nasional. aspx

OJK. 2014. 18 Bina Ekonomi Financial Services Authority Financial Report .———. 2017. "National Strategy for Indonesian Financial Literacy (Revisit 2017)." Financial Services Authority: 1–99.

Sari, Rahma, Firdaus, Winarto, Indiyani, and Nooraeni. 2020. "Comparison of Ols Regression and Robust Mm-Estimation in the Case of Dbd in Indonesia 2018." 8 (2): 68–74.

Sarma, M and Pais, J. (2011). Financial Inclusion and Development: A Cross Country Analysis. Journal of International Development 23

Sataloff, Robert T, Michael M Johns, and Karen M Kost. 2018. "2018 Economic Report on Indonesia (Central Statistics Agency)." Catalog: 9.

Soares, AP (2013). 済 無No Title No Title. Journal of Chemical Information and Modeling, 53 (9), 1689–1699.

Tempo.co. (2019, November 8).OJK Survey: 2019 Financial Literacy Increases, Translucent 76.19 Percent. Accessed on March 10, 2021.https://bisnis.tempo.co/read/1269759/survei-ojk-literasi-keuangan-2019-men Increase-t penetrating-7619-persen/full&view=ok

The World Bank. 2018. Financial Inclusion. Accessed on 2 October 2018. https://www.worldbank.org/en/topic/financialinclusion/overview#2

Sarma, M. (2012). Index of Financial Inclusion-A Measure of Financial Sector Inclusivenes. Berlin Working Papers on Money, Finance, Trade and Development. http://finance-and-trade.htw-berlin.de

Zenius. 2020. Economic Growth Theory.https: // www.zenius. net / prologue material / economy / a / 1229 / economic growth theory #: ~: text = What% 20 is% 20 theory% 20 growth% 20 economy, other% 20 so% 20 happens% 20% 20process% 20 growth




DOI: https://doi.org/10.29313/de.v12i2.7798

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.



Indexed by: 
Google Scholar  Mendeley Scientific Indexing Services   

Copyright of Dinamika Ekonomi: Jurnal Kajian Ekonomi dan Pembangunan (ISSN 1693-0606 | E-ISSN 2598-6287 )


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.