Impact of Internet Use on Economic Activities of West Sumatra

Alpon Satrianto et al.

doi:10.17762/pae.v58i1.1149

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Published: Jan 15, 2021

DOI: https://doi.org/10.17762/pae.v58i1.1149

Alpon Satrianto et al.

Abstract

This study aims to analyze the impact of internet usage on regional economic activities in West Sumatra. In particular, this study analyzes the impact of internet use on economic growth, consumption, investment and net exports of West Sumatra. This type of research is descriptive and associative research. The data in this study is in the form of panel data consisting of 19 districts / cities in West Sumatra from 2016-2018. The data analysis technique uses the Vector Autoregressive Panel (PVAR). The results of this study conclude that the use of the internet has a significant effect on economic growth, consumption, investment and net exports in both one and two previous periods. The use of the internet has the greatest impact in the short term on consumption activities in West Sumatra, while the use of the internet has the smallest impact in the short term on economic growth activities in West Sumatra. In the long run, the use of the internet has the greatest impact on economic growth in West Sumatra.

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Vol. 58 No. 1 (2021): Volume 58 No. 1 (2021)

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