Social Economic Analysis of Financial Inclusion and Poverty in Indonesia
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 12
Abstract
This article analyzes the impact of financial inclusion on poverty in Indonesia using data from the 2020 National Socioeconomic Survey (Susenas), with household heads as the sample. The study posits the hypothesis that financial inclusion significantly contributes to poverty reduction. The analytical method applied is the probit logit model, considering that the dependent variable is binary. The results indicate that financial inclusion has a negative and significant effect on poverty, with a probability of 0.000 at a 5% significance level. This suggests that increasing financial inclusion can reduce the risk of poverty by up to 8.2%. These findings underscore the importance of access to and use of financial services for households in the effort to alleviate poverty. Therefore, policies are needed to support the enhancement of financial inclusion through the expansion of access to financial services, improvement of financial literacy, adjustment of financial products and services, and cross-sector coordination among the government, private sector, and financial institutions.
Authors and Affiliations
Yeniwati , Elfindri , Nasri Bachtiar,
Keywords
Related Articles
- EP ID EP752272
- DOI 10.47191/jefms/v7-i12-09
- Views 32
- Downloads 0
The Effect of Profitability and Corporate Size on Company Value with Good Corporate Governance as a Moderating Variable in Manufacturing Companies
Manufacturing companies are chosen as the object of research because manufacturing companies listed on the Indonesia Stock Exchange (IDX) each year are developing and consist of various industrial sub-sectors so as to re...
Consumers of Indonesian Wardah Cosmetics are the Focus of an Analysisis of Visual Storytelling Marketing
Storytelling is a style of communication that employs a variety of elements in the form of a story or narrative. Compared to logical arguments, statistical data, and facts, storytelling is more credible. Wardah is one of...
Stock Returns Analysis with Dividend Policy as an Intervening Variable in IDX30 Index Companies on the Indonesia Stock Exchange
Stock Return is the profit the investor obtains for investing in a company. Shareholders or investors in their investments can get a return offered by a stock in the form of capital gains (the difference between the sell...
An Evaluation of the Effectiveness of Digital Financial Service (DFS) in Promoting Financial Inclusion (FI) among Low-Income Households
Financial inclusion, characterized by access and usage of formal financial services, is a critical driver of economic development and poverty reduction. In Nigeria, a country with a large population of unbanked and under...
World Economic Policy Uncertainty and the Stock Market in Vietnam: Current Situations and Policy Suggestions
This study examines the impact of global economic policy uncertainty on stock market development in Vietnam by providing a comprehensive analysis of current states and policy implications. This study contributes to the e...