Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015
This study examines empirically the effect of fiscal policy and trade openness on economic growth in Indonesia for the period 1990-2015. Fiscal policy includes government spending on infrastructures, human resources, and routine spending, while tax revenue and foreign loans is as source of financin...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/3363 |
| _version_ | 1797908355997499392 |
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| author | Nursini Nursini |
| author_facet | Nursini Nursini |
| author_sort | Nursini Nursini |
| collection | DOAJ |
| description |
This study examines empirically the effect of fiscal policy and trade openness on economic growth in Indonesia for the period 1990-2015. Fiscal policy includes government spending on infrastructures, human resources, and routine spending, while tax revenue and foreign loans is as source of financing. This study finds government spending on infrastructure and human resources have positive and significant effect on economic growth if they are financed by tax revenue and insignificant if they are financed by foreign loans. Routine government spending has negative and insignificant effect on economic growth for both financed by taxes and foreign loans. Trade openness has positive and significant effect on economic growth. The implication is the proportion of spending on infrastructure and human resources should be increased by taxes financing rather than foreign loans. Competitiveness of domestic industries should be improved to achieve a positive impact of free trade.
Keywords: Fiscal, Trade openness, Economic Growth
JEL Classifications:E62; F13; F41; H5; H6
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| first_indexed | 2024-04-10T10:51:26Z |
| format | Article |
| id | doaj.art-d2e39b23f77d41829bc4fb0bb53fc32e |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:51:26Z |
| publishDate | 2017-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-d2e39b23f77d41829bc4fb0bb53fc32e2023-02-15T16:20:08ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-01-0171Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015Nursini Nursini0Hasanuddin University South Sulawesi-Indonesia This study examines empirically the effect of fiscal policy and trade openness on economic growth in Indonesia for the period 1990-2015. Fiscal policy includes government spending on infrastructures, human resources, and routine spending, while tax revenue and foreign loans is as source of financing. This study finds government spending on infrastructure and human resources have positive and significant effect on economic growth if they are financed by tax revenue and insignificant if they are financed by foreign loans. Routine government spending has negative and insignificant effect on economic growth for both financed by taxes and foreign loans. Trade openness has positive and significant effect on economic growth. The implication is the proportion of spending on infrastructure and human resources should be increased by taxes financing rather than foreign loans. Competitiveness of domestic industries should be improved to achieve a positive impact of free trade. Keywords: Fiscal, Trade openness, Economic Growth JEL Classifications:E62; F13; F41; H5; H6 https://econjournals.com/index.php/ijefi/article/view/3363 |
| spellingShingle | Nursini Nursini Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015 International Journal of Economics and Financial Issues |
| title | Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015 |
| title_full | Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015 |
| title_fullStr | Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015 |
| title_full_unstemmed | Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015 |
| title_short | Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia:1990-2015 |
| title_sort | effect of fiscal policy and trade openness on economic growth in indonesia 1990 2015 |
| url | https://econjournals.com/index.php/ijefi/article/view/3363 |
| work_keys_str_mv | AT nursininursini effectoffiscalpolicyandtradeopennessoneconomicgrowthinindonesia19902015 |