The The Role of Digital Literacy in Creating Demand for Domestic Production Through GDP Indicators in Indonesia

English

Abstract

This study investigates the role of digital literacy in increasing domestic demand for domestic production using control indicators, internet users, domestic consumption, government spending, GDP.This study uses an annual time period from 2000 to 2020, this study uses "autoregressive vectors" to simulate causal relationships between variables during the study period. This study uses data provided by the World Bank and the Indonesian Central Bureau of Statistics. We found that economic growth has an impact on increasing government spending which encourages economic growth and increases domestic consumption which provides an impetus for increased production which in turn has an impact on increasing economic growth. However, economic growth does not encourage digital technology literacy. Although digital technology literacy encourages domestic consumption, it is identified that digital literacy has an impact on creating demand for goods and services produced domestically. So it can be said that although digital literacy does not provide a direct impetus to economic growth, it does provide an impetus for economic growth through increasing domestic consumption.