The Impact of Online Market toward Social Welfare on Fourth Industrial Revolution Era: A Case at Bulan Terang Utama Online Market Malang*

Abstract

Internet technology and social media especially from mobile social commerce are known to have lavish impacts on the economic development. The purpose of this study was to identify the impact of the online market on the level of social welfare of online market traders which is proxies by the level of income. Bulan Terang Utama (BTU) area was used as an object in this study due to the fact that it is a subsidized housing area with a level of middle-income community income. The method used in this study was a quantitative method using the analysis of three-stage least square (3SLS). The results of the 3SLS estimation indicate that there was a significant increase in online seller income with the presence of the BTU online market. This situation happened by the fact that many buyers switch to sellers after they join the BTU Online Market. They began as a buyer and then offered their merchandise through the online market and became a permanent seller in this group. When many residents in these areas are using online markets as their primary place for selling, there will be need for strong connectivity (internet network) in each region to develop current economic activities. Furthermore, the government rule in enhancing technology literacy is also very important especially for the middle to lower regions.

Citation

Yusida, E., Qurrata, V.A., Purnamasari, V. and Huang, W.-C. (2021), "The Impact of Online Market toward Social Welfare on Fourth Industrial Revolution Era: A Case at Bulan Terang Utama Online Market Malang*", Barnett, W.A. and Sergi, B.S. (Ed.) Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics (International Symposia in Economic Theory and Econometrics, Vol. 28), Emerald Publishing Limited, Leeds, pp. 3-12. https://doi.org/10.1108/S1571-038620210000028001