Digital Payment And Consumption Function Model Of Coastal Communities: A Maslahah Perspective

DOI

10.2991/978-94-6463-525-6_4How to use a DOI?

Keywords

Income; Consumption; Savings; Maslahah; Digitalisation; Sadaqah

Abstract

This study examined the consumption function model of coastal communities. It analysed the variation of income allocated to consumption expenditure, sadaqah, and savings through digital payments in South Kalimantan Province, Indonesia. We argued that digital technology through digital payments could support the consumption of coastal communities from a maslahah perspective through the concept of sadaqah. This study used field research and survey methods to collect data. The sample was taken based on quota sampling of as many as 60 respondents who live in coastal areas. The data were analysed using the macro-Keynes consumption function model and the consumption function of the maslahah perspective using the double log model of multiple linear regression analysis. The results found that the consumption function model of coastal communities based on the use of digital payments is C = 539,487 + 0.17 Y with APC = 0.99, APS = 0.01, MPC = 0.17, and MPS = 0.83.

Meanwhile, the consumption function model based on using digital payments in the maslahah perspective yielded the equation LnY = 3,368 + 0,725 LnX₁ + 0,017 LnX₂ + 0,064 LnX₃. This model showed that digital payments influence the consumption function model of coastal communities, which tend to allocate almost all their income for consumption. From a maslahah perspective, the sadaqah element also played a role in determining the consumption pattern and income level of coastal communities. This study provides empirical evidence of the consumption function model in Islamic economics in the digital era. It provides an understanding of the role of sadaqah and digitalisation in the economy of coastal communities, which can help develop policy directions to reduce economic inequality.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Haris Faulidi Asnawi
AU  - Yusuf Asyahri
AU  - Agus Purnomo
AU  - Annisa Sayyid
AU  - Faqih El Wafa
PY  - 2024
DA  - 2024/10/29
TI  - Digital Payment And Consumption Function Model Of Coastal Communities: A Maslahah Perspective
BT  - Proceedings of the 2023 Brawijaya International Conference (BIC 2023)
PB  - Atlantis Press
SP  - 22
EP  - 35
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-525-6_4
DO  - 10.2991/978-94-6463-525-6_4
ID  - Asnawi2024
ER  -