NATIONAL POLICY OF INCLUSIVE FINANCIAL STABILITY TO INCREASE ECONOMIC GROWTH OF DISTRICT / CITY IN THE PROVINCE OF WEST JAVA (2015-2017) a. Nur Azmi Karim and b. Dimas Yudistira Nugraha
a and b : Entrepreneurship Departement, Binus Bussiness School Undergraduate Program, Bina Nusantara University Bandung Campus, Bandung, Indonesia, 40181
Abstract
This study is to determine the effect of financial inclusion on the economic growth of districts / cities in West Java Province from 2015 to 2017. The research data is secondary data collected from several sources, namely Bank Indonesia, Statistics Bulletin, Regional Economic Studies Bulletin (BPS) in various editions. . The method used to analyze the data is the Panel Data Regression method using the Eviews 10 analysis tool. The purpose of this paper is to determine the magnitude of the influence of financial inclusion and the level of education on economic growth. Access variable is measured from the number of bank offices per 100,000 population, usage variable is measured from third party fund accounts per 1,000 population, education level is measured from the education index, and economic growth is measured by GRDP. All variables at the district / city level in West Java Province. The main finding of this study is that access is very influential on economic growth where if public access increases by 1 bank office per 100,000 population it will increase economic growth by 6%. Even though the use variable is in a positive direction with economic growth, the effect is not significant, meaning that an increase in the number of TPF accounts has no effect on increasing economic growth. While the education variable shows a different direction, meaning that if the education level of the district / city community in West Java Province is more than the SMA level does not significantly affect the decline in economic growth, meaning that economic growth is not determined based on the level of education.
Keywords: bank offices, third party fund accounts, education, economic growth, financial inclusion, acces and usage
