Analysis of the Effect of Electronic Money Transactions and Macroeconomic Variables on Economic Growth in Indonesia

Abstract

This research examines the influence of electronic money payment methods and macroeconomic variables, namely money supply, domestic investment, foreign direct investment (FDI), and labor, on economic growth in Indonesia during the 2008-2023 period. The data used are secondary data obtained from official sources such as Bank Indonesia, the BPS (Central Bureau of Statistics), and the World Bank. The research approach in this study employs quantitative analysis using the Autoregressive Distributed Lag (ARDL) method. The results showed that electronic money transactions had a positive and significant effect in the short and long term on economic growth, variable money supply showed that it had a negative and significant effect in the short and long term on economic growth, domestic investment showed negative and insignificant results in the short and long term on economic growth, FDI showed negative and significant results in the short and long term on economic growth, and labor showed positive and significant results in both the short and long term on economic growth.