RELATIONSHIP BETWEEN RURAL AREA'S ACCESS TO ELECTRICITY AND FINANCIAL DEVELOPMENT: ‎THE CASE OF INDONESIA


Abstract views: 159 / PDF downloads: 74

Authors

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

DOI:

https://doi.org/10.5281/zenodo.8344822

Keywords:

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

Abstract

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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Published

2023-09-14

How to Cite

ÇİFTÇİ, H., MANGA, M., ERDOĞAN, E., & Suliman ESAA, A. . A. (2023). RELATIONSHIP BETWEEN RURAL AREA’S ACCESS TO ELECTRICITY AND FINANCIAL DEVELOPMENT: ‎THE CASE OF INDONESIA. NEW ERA INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL RESEARCHES, 8(20), 55–66. https://doi.org/10.5281/zenodo.8344822

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