The Effect of Information and Communication Technology (ICT) on Inclusive Green Growth (IGG) in Indonesia

Authors

  • Alfiani Farida Universitas Andalas
  • Syafruddin Karimi Universitas Andalas
  • Febriandi Prima Putra Universitas Andalas

DOI:

https://doi.org/10.37385/ijedr.v5i1.3660

Keywords:

Sustainable Development, Inclusive Green Growth, ICT Impact, Regional Disparities, Investment In ICT Infrastructure

Abstract

The sustainable development paradigm gives rise to the concept of inclusive green growth. It focuses not only on economic growth but also on social inclusion and environmental sustainability. This study aims to measure inclusive green growth at the provincial level in Indonesia in 2013-2021 and investigate the impact of ICT on it. The composite index method is used in this study to measure inclusive green growth. Furthermore, this research uses panel data regression to examine the impact of ICT on inclusive green growth. The results show that Indonesia's inclusive green growth achievements are still in the moderate category. The provinces in the Eastern Indonesia region tend to have lower achievements in social dimensions. However, in the Western Indonesia region, the provinces tend to have lower achievements in environmental dimensions. The regression analysis showed that utilization of mobile phones and the internet had a significant positive effect on inclusive green growth. On the other hand, computer and fixed telephone ownership had an adverse effect on it. Equitable distribution of ICT development, especially in Eastern Indonesia and rural areas, should be continuously encouraged through investment in ICT and its supporting infrastructure.

References

Aminata, J., Nusantara, D. I. K., & Susilowati, I. (2022). The Analysis of Inclusive Green Growth In Indonesia. Jurnal Ekonomi & Studi Pembangunan, 23(1), Layouting. https://doi.org/10.18196/jesp.v23i1.13811

Anna, Z., Hindayani, P., & Putri, I. A. P. (2018). Indonesian Cities Green Development Index: A Prototype Measurement. International Journal of Sciences: Basic and Applied Research (IJSBAR), 37 (3), 290–308.

Ariyati, N., Rahayu, F., Amalia, N. R., Nurhaliza, S., Ghufran, T. M., Adi, A. R., & Jalaluddin, J. (2018). Pertumbuhan Ekonomi, Belanja Modal dan Indeks Pembangunan Manusia: Panel Data Evidence Empat Kabupaten di Aceh. Jurnal Samudra Ekonomi Dan Bisnis, 9(1), 92–103. https://doi.org/10.33059/jseb.v9i1.465

Arshad, Z., Robaina, M., & Botelho, A. (2020). The role of ICT in energy consumption and environment: an empirical investigation of Asian economies with cluster analysis. Environmental Science and Pollution Research, 27(26), 32913–32932. https://doi.org/10.1007/s11356-020-09229-7

Aslam, A., Naveed, A., & Shabbir, G. (2021). Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis. Quality & Quantity, 55(1), 333–355. https://doi.org/10.1007/s11135-020-01008-3

Asongu, S. A. (2018). ICT, openness and CO2 emissions in Africa. Environmental Science and Pollution Research, 25(10), 9351–9359. https://doi.org/10.1007/s11356-018-1239-4

Asongu, S. A., Le Roux, S., & Biekpe, N. (2017). Environmental degradation, ICT and inclusive development in Sub-Saharan Africa. Energy Policy, 111, 353–361. https://doi.org/10.1016/j.enpol.2017.09.049

Badan Pengkajian dan Penerapan Teknologi. (2021). Outlook Energi Indonesia 2021. BPPT.

Badan Perencanaan Pembangunan Nasional. (2014). Rencana pembangunan jangka menengah nasional (RPJMN) 2015-2019 (Vol. 2). Bappenas.

Badan Perencanaan Pembangunan Nasional. (2020). Rencana pembangunan jangka menengah nasional 2020-2024. Jakarta: Bappenas.

Badan Pusat Statistik. (2020a). Indeks Pembangunan Teknologi Informasi dan Komunikasi 2019. BPS.

Badan Pusat Statistik. (2020b). Statistik Indonesia 2020. BPS.

Badan Pusat Statistik. (2021). Indeks Pembangunan Teknologi Informasi dan Komunikasi 2021. BPS.

Badan Pusat Statistik. (2022). Indikator Kesejahteraan Rakyat 2022. BPS.

Baltagi, B. H. (2005). Econometric analysis of panel data (Vol. 4). Springer.

Bresnahan, T. F., & Trajtenberg, M. (1995). General purpose technologies ‘Engines of growth’? Journal of Econometrics, 65(1), 83–108. https://doi.org/10.1016/0304-4076(94)01598-T

Danish, Khan, N., Baloch, M. A., Saud, S., & Fatima, T. (2018). The effect of ICT on CO2 emissions in emerging economies: does the level of income matters? Environmental Science and Pollution Research, 25(23), 22850–22860. https://doi.org/10.1007/s11356-018-2379-2

Ejemeyovwi, J. O., & Osabuohien, E. S. (2020). Investigating the relevance of mobile technology adoption on inclusive growth in West Africa. Contemporary Social Science, 15(1), 48–61. https://doi.org/10.1080/21582041.2018.1503320

Faldrix, Y., Andrianus, F., & Kamarni, N. (2021). Analisis Dampak Perkembangan Teknologi Informasi dan Komunikasi Dalam Perkonomian Sumatera Barat. Jurnal Ekonomi Dan Bisnis Dharma Andalas, 23(2), 385–396.

Gill, A. R., Viswanathan, K. K., & Hassan, S. (2017). Is Environmental Kuznets Curve Still Relevant? International Journal of Energy Economics, 7(1), 156–165.

Global Commission on the Economy and Climate. (2014). Better Growth, Better Climate: The New Climate Economy Report. GCEC.

Global Green Growth Institute. (2015). Delivering Green Growth for a Prosperous Indonesia. GGGI.

Green Growth Knowledge Platform. (2016). Measuring Inclusive Green Growth at The Country Level. GGKP Working Paper, 02.

Grossman, G., & Krueger, A. (1991). Environmental Impacts of a North American Free Trade Agreement. National Bureau of economic research Cambridge, Mass., USA. https://doi.org/10.3386/w3914

Gujarati, D. N. (2004). Basic econometrics. The Mc-Graw Hill.

Harianto, S. K., & Sari, D. W. (2020). Dampak Spillover Penanaman Modal Asing terhadap Produktivitas Industri Manufaktur Medium-High Technology di Indonesia. Jurnal Samudra Ekonomi Dan Bisnis, 12(1), 1–17. https://doi.org/10.33059/jseb.v12i1.2138

Hazmi, D. M., Karimi, S., & Muharja, F. (2023). Measuring and Determinants of Inclusive Growth: Evidence from Indonesia. Optimum: Jurnal Ekonomi Dan Pembangunan, 12(2), 135–154. https://doi.org/10.12928/optimum.v12i2.5984

Heeks, R. (2016). Examining “Digital Development”: The Shape of Things to Come? SSRN Electronic Journal, 64. https://doi.org/10.2139/ssrn.3431739

Institute for Development of Economics and Finance. (2019). Ekonomi Digital yang Inklusif di Indonesia: Perspektif Gender, Regional, dan Sektoral. INDEF.

International Telecommunication Union. (2017). Measuring the Information Society Report 2017. ITU.

Iyengar, N. S., & Sudarshan. (1982). A Method of Classifying Regions from Multivariate Data. Economic Political Weekly, 2047–2052.

Jha, S., Sandhu, S. C., & Wachirapunyanont, R. (2018). Inclusive Green Growth Index: A New Benchmark for Quality of Growth. Asian Development Bank [ADB].

Kementerian Lingkungan Hidup dan Kehutanan. (2018). Statistik Lingkungan Hidup dan Kehutanan Tahun 2017. KLHK.

Kostoska, O., & Kocarev, L. (2019). A Novel ICT Framework for Sustainable Development Goals. Sustainability, 11(7), 1961. https://doi.org/10.3390/su11071961

Kusumaningrum, S., & Yuhan, R. J. (2019). Pertumbuhan Ekonomi Provinsi di Indonesia Berdasarkan Indeks Komposit Pertumbuhan Inklusif dan Faktor yang Memengaruhinya. Jurnal Ekonomi Dan Kebijakan Publik, 10(1), 1–17. https://doi.org/10.22212/jekp.v10i1.1150

Lee, J. W., & Brahmasrene, T. (2014). ICT, CO 2 Emissions and Economic Growth: Evidence from a Panel of ASEAN. Global Economic Review, 43(2), 93–109. https://doi.org/10.1080/1226508X.2014.917803

Li, M., Zhang, Y., Fan, Z., & Chen, H. (2021). Evaluation and Research on the Level of Inclusive Green Growth in Asia-Pacific Region. Sustainability, 13(13), 7482. https://doi.org/10.3390/su13137482

Liderson, D. M., & Pasaribu, E. (2020). PEMBENTUKAN BIGGI DALAM MENGUKUR PERTUMBUHAN INKLUSIF HIJAU. Seminar Nasional Official Statistics, 2019(1), 266–274. https://doi.org/10.34123/semnasoffstat.v2019i1.84

Nchake, M. A., & Shuaibu, M. (2022). Investment in ICT infrastructure and inclusive growth in Africa. Scientific African, 17, e01293. https://doi.org/10.1016/j.sciaf.2022.e01293

Ofori, I. K., & Asongu, S. A. (2021). ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa. Telematics and Informatics, 65, 101718. https://doi.org/10.1016/j.tele.2021.101718

Organisation for Economic Cooperation and Development. (2008). Handbook on Constructing Composite Indicators: Methodology and User Guide. OECD Publishing.

Organisation for Economic Cooperation and Development. (2011). Towards Green Growth: Monitoring Progress. OECD.

Øverby, H., & Audestad, J. A. (2021). Introduction to Digital Economics. Springer International Publishing. https://doi.org/10.1007/978-3-030-78237-5

Park, Y., Meng, F., & Baloch, M. A. (2018). The effect of ICT, financial development, growth, and trade openness on CO2 emissions: an empirical analysis. Environmental Science and Pollution Research, 25(30), 30708–30719. https://doi.org/10.1007/s11356-018-3108-6

Pradhan, R. P., Mallik, G., & Bagchi, T. P. (2018). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review, 30(1), 91–103. https://doi.org/10.1016/j.iimb.2018.01.001

Raharti, R., Laras, T., & Oktavianti, O. (2021). Model Ketimpangan Pembangunan Ekonomi di Indonesia. Jurnal Samudra Ekonomi Dan Bisnis, 12(2), 257–270. https://doi.org/10.33059/jseb.v12i2.2422

Raheem, I. D., Tiwari, A. K., & Balsalobre-Lorente, D. (2020). The role of ICT and financial development in CO2 emissions and economic growth. Environmental Science and Pollution Research, 27(2), 1912–1922. https://doi.org/10.1007/s11356-019-06590-0

Solomon, E. M., & Klyton, A. van. (2020). The impact of digital technology usage on economic growth in Africa. Utilities Policy, 67, 101104. https://doi.org/10.1016/j.jup.2020.101104

Sun, Y., Ding, W., Yang, Z., Yang, G., & Du, J. (2020). Measuring China’s regional inclusive green growth. Science of The Total Environment, 713, 136367. https://doi.org/10.1016/j.scitotenv.2019.136367

United Nations Environment Programme. (2012). Measuring Progress Towards an Inclusive Green Economy. UNEP.

Vu, K. M. (2013). Information and Communication Technology (ICT) and Singapore’s economic growth. Information Economics and Policy, 25(4), 284–300. https://doi.org/10.1016/j.infoecopol.2013.08.002

Wang, N. (2020). Does Foreign Direct Investment Improve Inclusive Green Growth? Empirical Evidence from China. International Journal of Business Management and Finance Research, 3(1), 12–19. https://doi.org/10.53935/2641-5313.v3i1.39

World Bank. (2012). Inclusive green growth: The pathway to sustainable development. The World Bank.

World Economic Forum. (2017). The Inclusive Growth and Development Report 2017. WEF.

Zhou, R. (2022). Measurement and Spatial-Temporal Characteristics of Inclusive Green Growth in China. Land, 11(8), 1131. https://doi.org/10.3390/land11081131

Zhu, S., & Ye, A. (2018). Does Foreign Direct Investment Improve Inclusive Green Growth? Empirical Evidence from China. Economies, 6(3), 44. https://doi.org/10.3390/economies6030044

Downloads

Published

2023-11-28

How to Cite

Farida, A., Karimi, S., & Putra, F. P. (2023). The Effect of Information and Communication Technology (ICT) on Inclusive Green Growth (IGG) in Indonesia. International Journal of Economics Development Research (IJEDR), 4(4), 2011–2030. https://doi.org/10.37385/ijedr.v5i1.3660