Digital Economy and Economic Groth in Indonesia: Insight and Challenges
DOI:
https://doi.org/10.23969/jrie.v6i2.451Keywords:
Digital Economy, E-Commerce, Economic Growth, Panel Data, IndonesiaAbstract
This study aims to analyze the relationship between the adoption of e-commerce (e-commerce) and regional economic growth in Indonesia. Using data from 34 provinces during the 2019–2021 period, the study applied panel data regression with a pooled OLS model, and included the index of education, real investment, and formal labour as control variables. The results of the study showed that the digital economy was positively and significantly related to economic growth. Real investment also showed a positive and significant relationship, while the labour force was positively associated with a weaker significance and an insignificant education index. These findings affirm the importance of strengthening the digital ecosystem through equitable distribution of infrastructure, capacity building of business actors, productive investment, and digital skills development. Given that the research period covered the COVID-19 pandemic, the estimated results reflect statistical relationships, not evidence of long-term causality.
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