FINANCIAL DEEPENING DAN KEMISKINAN DI INDONESIA

Abstract

Abstract

This study aims to analyze the effect of macro
variables in the form of real GDP, exchange rate,
inflation and deposit rates against Financial Deepening
in Indonesia, as well as to analyze the effect of Financial
Deepening on poverty alleviation in Indonesia. This
study uses time series data from 2000 to 2017. The model
used is Multiple Linear Regression Analysis and Simple
Regression Analysis using Microsoft Excel 2003
software, Herodes 1.4, SPSS 24, and Eviews 8. The
results show that with the level of confidence 95 percent,
real GDP, exchange rate and interest rate have positive
effect on Financial Deepening, while inflation does not
affect Financial Deepening. Furthermore, Financial
Deepening has a negative effect on the number of poor
people. The government should make more efforts in
stabilizing Indonesia's macroeconomic conditions
through appropriate policies to keep the value of money
stable. It is suggested for further research to add other
financial deepening indicators such as credit ratio or
deposit ratio so that it can be done comparison of
analysis, and can include other independent variable
such as investment. In addition it can also examine the
state of financial deepening other countries to be
comparable to the state of Indonesia, and using other
methods.