The Role Of Economic Digitalization On Economic Performance In Indonesian

Abstract

Economic digitalization has an important role in improving the economic performance
of a country. The purpose of this study is to analyze the effect of economic digitalization
as measured by internet users, financial technology, electronic money, and electronic
commerce on economic performance proxied using Gross Regional Domestic Product
(GRDP) with a research focus on 34 Indonesian provinces during the 2019-2022 period.
The method used in this study is a panel data regression model with secondary data
sourced from BPS, OJK, and BI. So the best model is obtained, namely the Fixed Effect
Model. Partially, the results showed that the internet users variable had a positive and
significant effect on GRDP, financial technology had a negative and significant effect on
GRDP, electronic money and electronic commerce variables had a negative and
insignificant effect on GRDP. Simultaneously, the variables of internet users, financial
technology, electronic money, and electronic commerce affect GRDP.