Journal of Applied Econometric

Modelling the Effect of Digital Financial Inclusion on Income Inequality in Developing Countries

2025-02-19T06:32:47+00:00

Income inequality remains an urgent issue in developing countries, which can hinder economic growth and social stability. In the last decade, digital financial inclusion has grown rapidly as a potential solution to narrow this gap by opening up access to financial services for previously unreachable communities. This study aims to analyze the effect of digital financial inclusion on income inequality in developing countries, focusing on the potential of financial technology in narrowing economic gaps. Using econometric methods with panel data from several developing countries for the period 2015 to 2023, this model measures the impact of access to digital financial services on the distribution of people's income. The data used included variables related to digital payment adoption, mobile financial service usage, and access to digital credit, which were analyzed using the dynamic panel regression method. The results show that increasing digital financial inclusion has a significant negative correlation with income inequality. This indicates that access to digital financial services can encourage income equity by providing a wider means of economic inclusion. These findings have important implications for policymakers in designing digital financial strategies to support more inclusive economic stability

Econometric Analysis of Inflation Dynamics in Digital Payment Ecosystems in Emerging Markets

2025-02-19T06:31:17+00:00

Inflation in emerging markets is becoming a serious challenge in the face of rapid digital transformation, especially with the increasing use of digital payments changing consumption patterns and financial transactions. Within this ecosystem, digital payment services such as mobile banking and e-wallets open up wider economic access, but they also raise concerns about their impact on inflation stability, particularly in countries with macroeconomic vulnerabilities. This study aims to analyze the influence of the digital payment ecosystem on inflation dynamics in emerging markets, using dynamic panel econometric analysis with data samples from 20 developing countries in the period 2015–2023. Key variables include digital payment penetration rates, annual inflation, as well as control indicators such as GDP growth, unemployment rates, and interest rates. The results show that the adoption of digital payments has a significant impact on inflation dynamics, where the increased use of digital payments tends to accelerate the inflation response to changes in demand and prices. In addition, in countries with immature financial systems, the high penetration of digital payments amplifies inflationary volatility, demonstrating the need for adaptive monetary supervision. These findings provide insight for policymakers on the importance of balancing digital financial innovation with monetary policy to maintain economic stability

The Role of Digital Transformation in Labor Market Changes: An Econometric Analysis of the Impact of Automation on the Manufacturing Sector

2025-02-19T06:29:11+00:00

Digital transformation is fundamentally changing the landscape of the global labor market, especially in the manufacturing sector that is increasingly adopting automation technology. Developing countries, including Indonesia, face significant challenges in responding to shifting skills needs due to these technological developments. This study aims to analyze in depth the impact of automation on labor market dynamics in the manufacturing sector, focusing on changing patterns of skills demand and their implications for labor productivity and resilience. Using a sophisticated econometric approach, this study utilizes panel data from the manufacturing industry in Indonesia over the past ten years. The analysis was conducted using fixed-effects and multivariate regression methods to assess the relationship between the adoption rate of automation technology and key variables of the labor market, such as changes in skill composition, wage levels, and demand for skilled versus unskilled labor. The results of the analysis show that there is a significant impact of automation in reducing the demand for non-skilled labor, while specialized skills, especially in the field of technology and maintenance, are experiencing an increase in demand. This research provides important insights for the formulation of policies that support the upskilling of the workforce in the face of the digital era, and shows that the sustainability of the manufacturing sector is highly dependent on the adaptation and development of technology-based skills.

Estimating the Impact of Remote Work Policies on Productivity and Improving Welfare in Developing Countries: A Case Study of Indonesia

2025-02-19T06:20:40+00:00

The global COVID-19 pandemic has accelerated the adoption of remote work policies in various countries, including developing countries such as Indonesia. This policy has a significant impact on labor productivity patterns and worker welfare, especially in sectors that can adapt to digital technology. However, the long-term impact of remote work on productivity and well-being in developing countries is still a debate that requires empirical evidence. This study aims to estimate the impact of remote work policies on labor productivity and welfare improvement in Indonesia. This study uses econometric methods with panel data analysis from the national labor force survey and relevant secondary data, incorporating a fixed-effects model to control for unobserved variables that may affect worker productivity and welfare. Data was collected from several key economic sectors during the period before and after the widespread adoption of remote work. The results of the study show that remote work policies have a significant positive impact on productivity in the information and communication technology sector, while the traditional sector shows mixed results. The improvement in worker welfare was recorded mainly in the aspect of work-life balance, as well as the reduction of travel time and costs. These findings highlight the importance of policies that support digital infrastructure and skills development to optimize the benefits of remote work in Indonesia.

Econometrics of Climate Change: The Impact of Emission Reduction Policies on Economic Growth in Southeast Asia

2025-02-19T06:18:13+00:00

Climate change has become a serious threat to economic stability, especially in the Southeast Asian region, which is vulnerable to negative impacts due to industrial activities and resource exploitation. Carbon emission reduction policies, implemented through various regulations and incentives, are expected to help reduce these impacts. However, there are concerns that this policy could hamper economic growth in the region. This study aims to explore the impact of emission reduction policies on economic growth in Southeast Asia through qualitative methods. Using a case study approach and thematic analysis, this study examines insights from policymakers, environmental experts, and industry representatives in a number of Southeast Asian countries. Data were obtained through in-depth interviews and analysis of relevant environmental policy documents. The results of the study show that there is a significant variation in the acceptance and impact of emission reduction policies on economic growth in various countries, which is influenced by the economic dependence on the high-emission industrial sector and the readiness of each country's green infrastructure. These findings provide guidance for policymakers to develop balanced emission reduction policies, prioritizing environmental sustainability while supporting economic growth