The Role Of Human Capital And Digital Financial Inclusion On Economic Performance In The Southeast Asia Region

Abstract

This study measures panel data from digital financial inclusion (DFI) in economic growth as an indicator of economic performance in ASEAN member countries, where we measure financial inclusion and digital indicators including internet user growth, % of domestic savings of GDP, and level of national flower. We use control variables for the consumer price index (CPI), government spending (GE), Education (EDU), and Population (POP). we used the Dubin spatial model to estimate the causal relationship between DFI and control variables on economic growth using the panel data. We discovered that human capital and digital financial inclusiveness are crucial for the Southeast Asian economic growth region represented by ASEAN member countries. In the Southeast Asian area, education is crucial for human development, and digital financial inclusion is crucial for raising production and consumption in the Southeast Asian region so that it can build a better economy.