Abstract
Technological developments have an impact on the payment system, namely Electronic Money moved very fast in 2018 and 2019, in 2018 it was 50.3% of the money in circulation and economic growth increased by 5.4% even though the interest rate in that year was at 6%. This means that some Indonesians have started to make changes to the payment system. Changes in digitalization in the financial sector, especially with new fundamental changes in the behavior of people's lives from the social and economic fields. The concept of Financial Technology is very good in the formation of digital financial infrastructure based on sustainable technological innovations that are considered effective in financial markets, including for small and medium-sized companies, this article focuses on three factors that affect economic growth, namely capital, labor, and technological developments. This study uses secondary time series data for the 2004-2019 quarter using Multiple Regression (OLS/One Least Square) and processed using the eviews 10 application. This study aims to determine the impact of technology on economic growth. And the results show that Emoney has a negative and significant effect on economic growth, interest rates and exchange rates have a negative effect on economic growth, and technology has a positive effect on economic growth.
Highlights
Technology is growing faster in the future, judging by the system of its use
Technological developments have an impact on the payment system, namely Electronic Money moved very fast in 2018 and 2019, in 2018 it was 50.3% of the money in circulation and economic growth increased by 5.4% even though the interest rate in that year was at 6%
The concept of Financial Technology is very good in the formation of digital financial infrastructure based on sustainable technological innovations that are considered effective in financial markets, including for small and medium-sized companies, this article focuses on three factors that affect economic growth, namely capital, labor, and technological developments
Summary
Technology is growing faster in the future, judging by the system of its use. Technology is a means or system that functions to provide comfort and convenience for humans. It is very clear that technology has changed the economic system, especially in terms of transactions and payments, which used to be done manually, they are done online. Technology makes it easier for people to send money and other transactions online using their mobile phones. This tool seems more convenient than physically transferring cash (Mccaffrey & Schiff, 2017). Advanced technology can significantly affect lifestyle changes, especially in rural areas (Wilson & Edwards, 2008). The New Economic growth theory was developed by Robert Lucas and Paul Romer. Where this theory focuses its cycle on human resources which are the main capital for increasing production and the national economy. According to Lucas and Romer, a workforce with broad knowledge, higher education, and professional training
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