Digital Payment And Consumption Function Model Of Coastal Communities: A Maslahah Perspective

Haris Faulidi Asnawi (), Yusuf Asyahri, Agus Purnomo, Annisa Sayyid and Faqih El Wafa
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Haris Faulidi Asnawi: UIN Antasari Banjarmasin, Faculty of Islamic Economics and Business
Yusuf Asyahri: UIN Antasari Banjarmasin, Faculty of Islamic Economics and Business
Agus Purnomo: UNISKA Muhammad Arsyad Al Banjari Banjarmasin, Faculty of Islamic Studies
Annisa Sayyid: UIN Antasari Banjarmasin, Faculty of Islamic Economics and Business
Faqih El Wafa: UIN Antasari Banjarmasin, Faculty of Islamic Economics and Business

A chapter in Proceedings of the 2023 Brawijaya International Conference (BIC 2023), 2024, pp 22-35 from Springer

Abstract: Abstract This study examined the consumption function model of coastal communities. It analysed the variation of income allocated to consumption expenditure, sadaqah, and savings through digital payments in South Kalimantan Province, Indonesia. We argued that digital technology through digital payments could support the consumption of coastal communities from a maslahah perspective through the concept of sadaqah. This study used field research and survey methods to collect data. The sample was taken based on quota sampling of as many as 60 respondents who live in coastal areas. The data were analysed using the macro-Keynes consumption function model and the consumption function of the maslahah perspective using the double log model of multiple linear regression analysis. The results found that the consumption function model of coastal communities based on the use of digital payments is C = 539,487 + 0.17 Y with APC = 0.99, APS = 0.01, MPC = 0.17, and MPS = 0.83. Meanwhile, the consumption function model based on using digital payments in the maslahah perspective yielded the equation LnY = 3,368 + 0,725 LnX1 + 0,017 LnX2 + 0,064 LnX3. This model showed that digital payments influence the consumption function model of coastal communities, which tend to allocate almost all their income for consumption. From a maslahah perspective, the sadaqah element also played a role in determining the consumption pattern and income level of coastal communities. This study provides empirical evidence of the consumption function model in Islamic economics in the digital era. It provides an understanding of the role of sadaqah and digitalisation in the economy of coastal communities, which can help develop policy directions to reduce economic inequality.

Keywords: Income; Consumption; Savings; Maslahah; Digitalisation; Sadaqah (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-525-6_4

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