Does financial inclusion reduce income inequality in South Sumatra, Indonesia?

Q3 Business, Management and Accounting

International Journal of Management and Enterprise Development Pub Date : 2022-04-26 DOI:10.20414/jed.v4i1.4853

S. Andaiyani, Nazeli Adnan, Yunisvita, M. Riswan

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引用次数: 0

Abstract

Purpose — To analyze the impact of financial inclusion toward income distribution inequality in South Sumatra, Indonesia.Research method — The analysis method in this paper is panel regression model. This methodology is used to avoid bias specifications in the model. This paper applied three dimensions of financial which are financial penetration, access to financial services and use of financial services. The data was taken from the Financial Services Authority, Central Bank of Indonesia and the Central Statistics Agency. The data was time series from 2010-2017 and cross section from 9 rural and urban in South Sumatra, Indonesia.Result — The result showed that each district in South Sumatera has divergent degree of financial inclusion index. The degree of financial inclusion index in city area has a relatively higher financial index than hinterland areas. Based on the result of estimations, the impact of financial inclusion index on income inequality is positive and significant. This evidence proved that financial inclusion does not reduce income inequality in South Sumatra, Indonesia.Recommendation — Financial institutions are more motivated to lend to groups like farmers, the impoverished, and small and micro businesses. It is vital for the government to provide more fair financial services amongst regencies and cities.

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普惠金融是否减少了印尼南苏门答腊岛的收入不平等?

目的-分析普惠金融对印度尼西亚南苏门答腊岛收入分配不平等的影响。研究方法——本文的分析方法为面板回归模型。该方法用于避免模型中的偏差规格。本文应用了金融的三个维度，即金融渗透、金融服务的获取和金融服务的使用。这些数据来自金融服务管理局、印尼中央银行和中央统计局。数据为2010-2017年的时间序列，以及印度尼西亚南苏门答腊岛9个农村和城市的横截面。结果:南苏门答腊各区普惠金融指数程度存在差异。城市地区金融普惠度指数相对于腹地地区具有较高的金融指数。根据估计结果，普惠金融指数对收入不平等的影响是显著的。这一证据证明，普惠金融并没有减少印度尼西亚南苏门答腊岛的收入不平等。建议——金融机构更有动力向农民、贫困人口和小微企业等群体提供贷款。政府在各县和各市之间提供更公平的金融服务至关重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Management and Enterprise Development Business, Management and Accounting-Business and International Management

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： IJMED is a major international research journal dedicated to business development strategy and entrepreneurship policy as well as management processes in an international and cross-cultural context. IJMED provides a venue for high quality papers including theoretical research articles, evidence-based case studies and practical applications seeking to explore best practice and investigate strategies for rapid growth management in SMEs. IJMED has a history of contributing to the academic literature, providing conceptual and practical insights and generating innovative ideas for organizational enterprise. Topics covered include: -SMEs'' start-up development, corporate venturing- Technological opportunities, new firm creation, valuation- Technological adoption, technology transfer, technopreneurship- Joint ventures/alliances, franchising and corporate ownership- Business incubator development strategy- Economic and social entrepreneurship- Virtual coaching services for SMEs- SMEs and entrepreneurship policy- Start-up cognitions/behaviours- Halo effect, technology licensing- Long-run technology investments- Knowledge management/technology strategy in SMEs- Managing rapid growth, accelerating competitive effectiveness- Strategy decision speed and SME performance- Entrepreneurs in non-profit sector.