Article Sidebar

Submitted
April 23, 2026
Accepted
June 7, 2026
Published
June 29, 2026
Download
PDF
Statistic
Read Counter : 3 Download : 7

Main Article Content

Abstract

Ordinary regression models are often inappropriate for economic performance metrics due to their tendency to have non-Gaussian distributions, heavy tails, and extreme outliers. This study analyzes the link between digitalization and provincial labor productivity growth in Indonesia using a Quantile Regression Model to capture the full, varied range of regional economic dynamics. The empirical framework assesses the combined influence of digital transformation and the underlying economic structures on productivity trajectories by using a panel data set of 34 provinces from 2017 to 2023. The baseline estimates suggest that the digital-productivity relationship is highly non-linear and more pronounced at the 50th quantile in which the direct effects of digital infrastructure, household consumption and sectoral value-added are statistically significant. Importantly, the inclusion of macro-digital interaction terms significantly changes the dynamics of the model. The results show that the marginal effect of digitalization on regional industrial upgrading is not marginal. Instead, it is highly conditional on a synergistic alignment between infrastructure, intensity of use, digital skills, and strong underlying economic baselines to effectively catalyze labor productivity gains.

Keywords

digitalizationproductivity growthquantile regressionemerging economies

Article Details

License
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

All articles published in the Eigen Mathematics Journal will be available for free reading and downloading. The license applied to this journal is Creative Commons Attribution-Non-Commercial-Share Alike (CC BY-NC-SA).

How to Cite
Sastri, R., & Rizal, R. N. (2026). An Application of the Quantile Regression Model to the Relationship Between Digitalization and Productivity Growth in Indonesia. EIGEN MATHEMATICS JOURNAL, 9(1), 103–113. https://doi.org/10.29303/emj.v9i1.371
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. E. Waldmann, “Quantile regression: A short story on how and why,” Statistical Modelling, vol. 18, no. 3–4, pp. 203–218, 2018. https://doi.org/10.1177/1471082X18759142.
  2. F. Javed, T. Kiss, and P. Österholm, “Performance analysis of nowcasting of gdp growth when allowing for conditional heteroscedasticity and non-gaussianity,” Applied Economics, vol. 54, no. 58, pp. 6669–6686, 2022. https://doi.org/10.1080/00036846.2022.2075823.
  3. C. Hornok and D. G. S. Raeskyesa, “Economic zones and local income inequality: Evidence from indonesia,” The Journal of Economic Inequality, vol. 22, pp. 66–100, 2024. https://doi.org/10.1007/s10888-023-09581-x.
  4. H. Q. Vu, N. H. M. Tram, and L. T. Thung, “Digital transformation and economic growth: empirical evidence from vietnam,” Post-Communist Economies, vol. 37, no. 7, pp. 910–932, 2025. https://doi.org/10.1080/14631377.2025.2511511
  5. S. Gomes and J. M. Lopes, “Ict access and entrepreneurship in the open innovation dynamic context: Evidence from oecd countries,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 2, p. 102, 2022. https://www.sciencedirect.com/science/article/pii/S2199853122000439.
  6. W. XU, X. WANG, and Z. ZHANG, “The role of the information technology in the industrial structure optimization and upgrading in china,” The Singapore Economic Review, vol. 67, no. 06, pp. 2023–2048, 2022. https://doi.org/10.1142/S0217590822500333.
  7. Y. Wang and L. Li, “Digital economy, industrial structure upgrading, and residents’ consumption: Empirical evidence from prefecture-level cities in china,” International Review of Economics & Finance, vol. 92, no. C, pp. 1045–1058, 2024. https://doi.org/10.1016/j.iref.2024.02.069.
  8. I. Belikova, N. B. Chernobay, R. V. Kron, V. A. Zhukova, and A. F. Dolgopolova, Digitalization in Agriculture—A New Step in the Development of Agro-industrial Complex. Springer Nature Singapore, 2022. https://doi.org/10.1007/978-981-16-7633-8_8.
  9. I. F. Gorlov, G. V. Fedotova, A. V. Glushchenko, M. I. Slozhenkina, and N. I. Mosolova, “Digital technologies in the development of the agro-industrial complex,” in Digital Economy: Complexity and Variety vs. Rationality, pp. 220–229, Springer International Publishing, 2020. https://doi.org/10.1007/978-3-030-29586-8_26.
  10. A. Shabur, A. Shahriar, and A. Ara, “From automation to collaboration: exploring the impact of industry 5.0 on sustainable manufacturing,” Journal of Discover Sustainability, vol. 6, no. 1, 2025. https://doi.org/10.1007/s43621-025-01201-0.
  11. J. S. Rha and H.-H. Lee, “Research trends in digital transformation in the service sector: a review based on network text analysis,” Journal of Service Business, vol. 16, no. 1, 2022. https://doi.org/10.1007/s11628-022-00481-0.
  12. H. Zhong and X. Wang, “Spatial mobility of china’s population in the digital economy,” Journal of Asian Economics, vol. 99, p. 101, 2025. https://doi.org/10.1016/j.asieco.2025.101941.
  13. B. P. Statistik, “Statistical yearbook of indonesia 2026,” 2026. https://www.bps.go.id/en/publication/2026/02/27/a43f03f45543dc4e9942f44c/statistical-yearbook-of-indonesia-2026.html, Last accessed on 2026-05-01.
  14. E. Aminullah, T. Fizzanty, N. Nawawi, J. Suryanto, N. Pranata, I. Maulana, L. Ariyani, A. Wicaksono, I. Suardi, N. L. L. Azis, and A. P. Budiatri, “Interactive components of digital msmes ecosystem for inclusive digital economy in indonesia,” Journal of the Knowledge Economy, vol. 15, no. 1, 2024. https://doi.org/10.1007/s13132-022-01086-8.
  15. M. S. Sapulette and P. A. Muchtar, “Redefining indonesia’s digital economy,” ERIA Policy Brief 2022-06, Economic Research Institute for ASEAN and East Asia (ERIA), jan 2023. https://www.eria.org/research/redefining-indonesias-digital-economy.
  16. Badan Pusat Statistik, Telecommunication Statistics in Indonesia 2024. BPS-Statistics Indonesia, 2025. https://www.bps.go.id/en/publication/2025/08/29/beaa2be400eda6ce6c636ef8/telecommunication-statistics-in-indonesia-2024.html,Lastaccessedon2026-05-01.
  17. A. D. Bank, ASEAN and Global Value Chains: Locking in Resilience and Sustainability. Mandaluyong City, Philippines: Asian Development Bank, 2023. https://doi.org/10.22617/SPR230100-2.
  18. B. Behera, A. Haldar, and N. Sethi, “Investigating the direct and indirect effects of information and communication technology on economic growth in the emerging economies: role of financial development, foreign direct investment, innovation, and institutional quality,” Information Technology for Development, vol. 30, no. 1, pp. 33–56, 2024. https://doi.org/10.1080/02681102.2023.2233463.
  19. C. S. Saba, N. Ngepah, and N. M. Odhiambo, “The nexus between ict diffusion, financial development, industrialization and economic growth: Evidence from sub-saharan african countries,” Journal of African Business, vol. 26, no. 2, pp. 454–478, 2025. https://doi.org/10.1080/15228916.2025.2451550.
  20. U. F. Saeed, R. Kamil, and I. Wiredu, “The roles of ict and governance quality in the finance-growth nexus of developing countries: a dynamic gmm approach,” Cogent Economics & Finance, vol. 13, no. 1, p. 2448228, 2025. https://doi.org/10.1080/23322039.2024.2448228.
  21. H. Fang and K. Iqbal, “Information and communication technology, upgrading of industrial structure and spatial spillover effect,” Scientific Reports, vol. 15, no. 1, 2025. https://doi.org/10.1038/s41598-025-02957-1.
  22. Z. Lv and T. Xu, “A panel data quantile regression analysis of the impact of corruption on tourism,” Current Issues in Tourism, vol. 20, no. 6, pp. 603–616, 2017. https://doi.org/10.1080/13683500.2016.1209164.
  23. Y. Yu, Q. Zhang, and F. Song, “Non-linear impacts and spatial spillover of digital finance on green total factor productivity: An empirical study of smart cities in china,” Sustainability, vol. 15, no. 12, 2023. https://doi.org/10.3390/su15129260.
  24. Y. A. Purnama and H. Mitomo, “The impact of ict on regional economic growth: Empirical evidence from 34 provinces of indonesia,” in 29th European Regional Conference of the International Telecommunications Society (ITS): "Towards a Digital Future: Turning Technology into Markets?", International Telecommunications Society (ITS), International Telecommunications Society (ITS), August 2018. https://hdl.handle.net/10419/184963.
  25. P. Zhang, J. Wang, M. Li, and F. Xiao, “Research on the mechanism of information infrastructure affecting industrial structure upgrading,” Scientific Reports, vol. 12, no. 1, 2022. https://doi.org/10.1038/s41598-022-24507-9.
  26. R. P. Pradhan, M. B. Arvin, M. Nair, J. H. Hall, and S. E. Bennett, “Institutional development in an information-driven economy: can icts enhance economic growth for low- and lower middleincome countries?,” Information Technology for Development, vol. 28, no. 3, pp. 468–487, 2022. https://doi.org/10.1080/02681102.2022.2051417.
  27. G. Cette, S. Nevoux, and L. Py, “The impact of icts and digitalization on productivity and labor share: Evidence from french firms,” Economics of Innovation and New Technology, vol. 31, no. 8, pp. 669–692, 2022. https://doi.org/10.1080/10438599.2020.1849967.
  28. A. A. Bello, J. Renai, A. Hassan, S. S. Akadiri, and A. R. Itari, “Synergy effects of ict diffusion and foreign direct investment on inclusive growth in sub-saharan africa,” Environmental Science and Pollution Research, vol. 30, no. 4, pp. 9428–9444, 2023. https://doi.org/10.1007/s11356-022-22689-3.
  29. B. Xi and P. Zhai, “Economic growth, industrial structure upgrading and environmental pollution: evidence from china,” Kybernetes, vol. 52, pp. 518–553, 07 2022. https://doi.org/10.1108/K-02-2022-0279.
  30. D. Zhang, X. Ma, J. Zhang, and Q. Deng, “Can consumption drive industrial upgrades? Evidence from chinese household and firm matching data,” Emerging Markets Finance and Trade, vol. 56, no. 2, pp. 409–426, 2020. https://doi.org/10.1080/1540496X.2019.1610878.

Similar Articles

<< < 1 2 3 > >> 

You may also start an advanced similarity search for this article.