Exploring The Strength of Apparently Uncorrelated Regression A Model for Analyzing and Detecting Economic Growth and Poverty through Financial Inclusion in Indonesia

In recent years, financial inclusion (FI) has emerged as an important topic with the potential to directly impact most countries around the ‎world. Indonesia is a developing country and therefore suffers from economic problems, most notably slow economic growth (EG) and ‎limited use of formal financial services. In addition, research has not shown a decrease in the Gini coefficient, despite a decrease in ‎poverty rates. Therefore, further research is necessary to verify this. This research adopted an important model, the seemingly unrelated ‎regression (SUR), to examine and determine the strength of the model and the relationship. The results showed that the effect of the SUR ‎model on economic growth was not positive. However, the significant negative effects revealed that the availability dimension is the most ‎effective and optimal in reducing poverty, alleviating its severity, and reducing income inequality in Indonesia. In contrast, the results did not ‎show any significant effect for the accessibility and ease of use dimensions‎.