ROLE OF ICT AS A CONTINGENCY FACTOR IN FINANCIAL SECTOR DEVELOPMENT, REMITTANCES, AND ECONOMIC GROWTH NEXUS: AN EMPIRICAL STUDY OF INDONESIA

  • Keshmeer Kanewar Makun University of the South Pacific
  • T.K. Jayaraman University of Tunku Abdul Rahman
Keywords: ICT, Remittances, Financial Sector Development, Economic Growth

Abstract

This study examines the role of ICT as a factor in Indonesia’s financial sector development, remittances, and economic growth nexus using annual data from 1984-2017. We use the bounds testing procedure based on the Autoregressive Distributed Lag framework and the neoclassical growth model. The findings of the study reveal that ICT has indeed emerged as a significant factor in the remittance-growth nexus by playing a complementary role in financial sector development. The policy implication is that ICT needs to be supported at all levels and the financial inclusion process should be carried forward as it has all the potential to speed up economic growth and development.

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Published
2020-10-31
How to Cite
Makun, K., & Jayaraman, T. (2020). ROLE OF ICT AS A CONTINGENCY FACTOR IN FINANCIAL SECTOR DEVELOPMENT, REMITTANCES, AND ECONOMIC GROWTH NEXUS: AN EMPIRICAL STUDY OF INDONESIA. Buletin Ekonomi Moneter Dan Perbankan, 23(3), 365 - 388. https://doi.org/10.21098/bemp.v23i3.1180
Section
Articles