Government size and digital inequality in Indonesia

https://doi.org/10.35912/jgas.v4i1.1981
Published: Jun 7, 2024

Abstract:

Purpose: This study analyzed the impact of government size in the field of infrastructure on digital inequality in Indonesia.

Method: This study uses panel data analysis with the CEM, FEM, and REM approaches using research samples from the Central Bureau of Statistics, Ministry of Finance, and International Telecommunication Union in Indonesia.

Results: The results of this study indicate that government-sized infrastructure has a negative and significant effect on the ICT Index, while the square government-sized infrastructure/infrastructure expenditure optimization effect has a positive and significant impact on the ICT Index, and the implementation of the infrastructure budget supports digital equity; therefore, it is necessary to have an equal distribution of infrastructure in all corners in order to proportionally increase the allocation of the infrastructure budget. This means that the size of the government is still too small to equalize the increase in the ICT development index. Based on the government size threshold, the average for each province in Indonesia reached 68 percent.

Limitations: This study was limited to the national level of each region in Indonesia.

Contributions: This study aims to serve as a reference for government considerations in strategic policies related to infrastructure spending and issues of the technology change strategy.

Keywords:
1. Government Infrastructure
2. GDP
3. Digital Inequality
Authors:
1 . Anna Yulianita
Sriwiijaya University, Indonesia
2 . Subardin Subardin
Sriwiijaya University, Indonesia
3 . Zulfikri Zulfikri
Sriwiijaya University, Indonesia
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How to Cite
Yulianita, A., Subardin, S., & Zulfikri, Z. (2024). Government size and digital inequality in Indonesia. Journal of Governance and Accountability Studies, 4(1), 31–41. https://doi.org/10.35912/jgas.v4i1.1981
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Issue & Section
Vol. 4 No. 1 (2024): January
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Badulescu, D., Simut, R., Badulescu, A., & Badulescu, A.-V. (2019). Relative effects of economic growth, environmental pollution, and non-communicable diseases on health expenditures in European Union countries. International journal of environmental research and public health, 16(24), 5115.

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    Di Liddo, G., Magazzino, C., & Porcelli, F. (2018). Government size, decentralization and growth: empirical evidence from Italian regions. Applied Economics, 50(25), 2777-2791.

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    Hargittai, E., & Hinnant, A. (2008). Digital inequality: Differences in young adults' use of the Internet. Communication Research, 35(5), 602-621.

    Henrekson, M. (1988). Swedish government growth: A disequilibrium analysis Contributions to Economic Analysis (Vol. 171, pp. 93-132): Elsevier.

    Islam, M. N., & Inan, T. T. (2021). Exploring the fundamental factors of digital inequality in Bangladesh. Sage Open, 11(2), 21582440211021407.

    Lamartina, S., & Zaghini, A. (2011). Increasing public expenditure: Wagner’s law in OECD countries. German Economic Review, 12(2), 149-164.

    Leguina, A., & Downey, J. (2021). Getting things done: Inequalities, Internet use and everyday life. new media & society, 23(7), 1824-1849.

    Lissitsa, S. (2015). Digital use as a mechanism to accrue economic capital: a Bourdieusian perspective. Innovation: The European Journal of Social Science Research, 28(4), 464-482.

    Lutz, C. (2019). Digital inequalities in the age of artificial intelligence and big data. Human behavior and emerging technologies, 1(2), 141-148.

    Silcock, R. (2001). What Is e-Government? Parliamentary Affairs, 54. doi:10.1093/pa/54.1.88

    Vedder, R. K., & Gallaway, L. E. (1998). Government size and economic growth: The Committee.

  1. Arifianto, T. (2011). Membuat Interface aplikasi android lebih keren dengan LWUIT. Yogyakarta: Andi Publisher.
  2. Badulescu, D., Simut, R., Badulescu, A., & Badulescu, A.-V. (2019). Relative effects of economic growth, environmental pollution, and non-communicable diseases on health expenditures in European Union countries. International journal of environmental research and public health, 16(24), 5115.
  3. Barro, R. J. (1990). Government spending in a simple model of endogeneous growth. Journal of political economy, 98(5, Part 2), S103-S125.
  4. BPS. (2021). Statistik Telekomunikasi Indonesia 2020. Retrieved from https://www.bps.go.id/id/publication/2021/10/11/e03aca1e6ae93396ee660328/statistik-telekomunikasi-indonesia-2020.html
  5. Buhtz, K., Reinartz, A., König, A., Graf-Vlachy, L., & Mammen, J. (2016). Second-order digital inequality: A clickstream analysis of e-commerce use. Mechanisms driving technology use in the context of digital inequality: A series of essays on the role of social influence, socio-cognitive processes, and socio-economic determinants, 132.
  6. Buracom, P. (2016). The distributional effects of social spending in Thailand: Evidence from a new database. Asian Politics & Policy, 8(2), 263-279.
  7. Cigna, L. (2018). Digital inequality in theory and practice: Old and new divides in the broadband era.
  8. De Marco, S. (2021). E-government and digital inequality: The Spanish case study. International Journal of Public Administration in the Digital Age (IJPADA), 8(1), 1-19.
  9. Di Liddo, G., Magazzino, C., & Porcelli, F. (2018). Government size, decentralization and growth: empirical evidence from Italian regions. Applied Economics, 50(25), 2777-2791.
  10. Ebbers, W. E., Jansen, M. G., & van Deursen, A. J. (2016). Impact of the digital divide on e-government: Expanding from channel choice to channel usage. Government information quarterly, 33(4), 685-692.
  11. Hargittai, E., & Hinnant, A. (2008). Digital inequality: Differences in young adults' use of the Internet. Communication Research, 35(5), 602-621.
  12. Henrekson, M. (1988). Swedish government growth: A disequilibrium analysis Contributions to Economic Analysis (Vol. 171, pp. 93-132): Elsevier.
  13. Islam, M. N., & Inan, T. T. (2021). Exploring the fundamental factors of digital inequality in Bangladesh. Sage Open, 11(2), 21582440211021407.
  14. Lamartina, S., & Zaghini, A. (2011). Increasing public expenditure: Wagner’s law in OECD countries. German Economic Review, 12(2), 149-164.
  15. Leguina, A., & Downey, J. (2021). Getting things done: Inequalities, Internet use and everyday life. new media & society, 23(7), 1824-1849.
  16. Lissitsa, S. (2015). Digital use as a mechanism to accrue economic capital: a Bourdieusian perspective. Innovation: The European Journal of Social Science Research, 28(4), 464-482.
  17. Lutz, C. (2019). Digital inequalities in the age of artificial intelligence and big data. Human behavior and emerging technologies, 1(2), 141-148.
  18. Silcock, R. (2001). What Is e-Government? Parliamentary Affairs, 54. doi:10.1093/pa/54.1.88
  19. Vedder, R. K., & Gallaway, L. E. (1998). Government size and economic growth: The Committee.