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  • Hakkı ÇİFTÇİ -
  • Müge MANGA
  • Esma ERDOĞAN
  • Ayat Abdelrahim Suliman ESAA



Kırsal Nüfus, Enerji Yoksunluğu, Endonezya, FMOLS, DOLS, CCR


Indonesia is one of the most densely populated countries in ‎the world, yet a significant portion of its people still lacks access to electricity. ‎In this context, ‎the current study focuses on examining the relationship between the rate of access to electrical ‎energy and the financial development of the rural region in Indonesia during the period 1991-2019. ‎The study has utilized the FMOLS (Modified Ordinary Least Squares Method), DOLS ‎‎(Dynamic Ordinary Least Squares Method), and CCR ‎‎(Canonical Cointegration) ‎methods to estimate the long-term ‎cointegration relationship coefficients between the variables in ‎the established model. According to the empirical analysis of the model, which includes ‎economic growth and the human capital index as control variables, the rate of access to ‎electrical energy in the rural region has increased as a result of financial development, implying ‎that energy deprivation in Indonesia's rural regions has decreased. Furthermore, improvements ‎in economic growth and human capital index cause energy deprivation in these regions to ‎decline. The findings show that financial development, human capital, and economic growth ‎should be used as important policy tools in order to increase the welfare levels in rural ‎areas, which is an important element of bottom-up development.


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