Access to Fintech and Poverty: Evidence from the Arrival of 4G Networks in Indonesia

Fatkhurrohman
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Fatkhurrohman: University of Warwick

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: This paper investigates the effect of the arrival of 4G networks on poverty rates by exploiting the gradual adoption of 4G networks in 514 districts/cities in Indonesia. Robust differences-in-differences estimates indicate that 4G network adoption has a significant negative influence on poverty rates – which we argue is due to the increased access to Fintech afforded by the 4G network, thus increasing poor people's access to credit. Moreover, Fintech capitalizes on mobile app-based services, a vastly growing business that has gained popularity since 2015. In addition, this paper also finds that Fintech promotes internet-based job opportunities for impoverished individuals, increasing their income and alleviating poverty in Indonesia.

Keywords: Fintech; Financial Inclusion; Poverty; Welfare; Indonesia JEL Classification: O33; O36; O53; I31; I32 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-fdg, nep-fle, nep-ict, nep-pay and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wrkesp:24

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