2025/08/04 by Wishnu Badrawani, Badrawani, Wishnu, Citra Amanda +5
Computer Science · Economics, Econometrics and Finance · #COVID-19 Pandemic Impacts #Economic Growth and Development #FOS: Economics and business #General Economics (econ.GN) #Microfinance and Financial Inclusion
paper · pdf · doi:10.48550/arxiv.2508.02119
openalex publication_date 2025/08/04 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Using a panel payment system dataset of thirty-three provinces in Indonesia, we examine the impact of digital payment on the regional economy, considering structural breaks induced by unprecedented events and policies. Digital payments were determined to significantly affect regional income and consumption before and after the identified breakpoint, with the impact greater following the break. Employing a novel method for structural break analysis within interactive effects panel data, we demonstrate that the break in retail payment models is due to COVID-19, and the break in the wholesale payment model is associated with the central bank's payment system policy.