JDE (Journal of Developing Economies) (Nov 2021)

Electronic Payment and Economic Growth in Indonesia

  • Wasiaturrahma Wasiaturrahma,
  • Anita Lucky Kurniasari

DOI
https://doi.org/10.20473/jde.v6i2.24923
Journal volume & issue
Vol. 6, no. 2
pp. 286 – 307

Abstract

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The purpose of this study is to investigate the effect of non-cash payment transactions on economic growth in Indonesia and to see the responses from supporting variables, such as the velocity of money and the price of transactions. This study involves a Vector Error Correction Model (VECM) analysis tool, using monthly time series data during 2009: 1 – 2017: 12. The results show that the payment instrument affects economic growth, especially the Card-Based Payment Instrument (CBPI). In addition, there are changes to the velocity of money and prices caused by the increase in the use of non-cash payment instruments. Keywords: Electronic Payment, Economic Growth, Vector Error Correction Model (VECM) JEL: E4; C51

Keywords