The Relationship between Tax Revenues and Economic Growth in Indonesia
This paper examines the causal relationship between tax revenues and the rate of economic growth in Indonesia. We want to know whether taxation in Indonesia has discouraged economic variables as channels through which tax revenues influence economic growth or not. In order to find the causal relatio...
| Main Authors: | , |
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| Format: | Thesis |
| Published: |
[Yogyakarta] : Universitas Gadjah Mada
2011
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| Subjects: |
| _version_ | 1826043928367857664 |
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| author | , Yontu Karnindo Saragih, S.E. , Dr. Yoichi Okita |
| author_facet | , Yontu Karnindo Saragih, S.E. , Dr. Yoichi Okita |
| author_sort | , Yontu Karnindo Saragih, S.E. |
| collection | UGM |
| description | This paper examines the causal relationship between tax revenues and the
rate of economic growth in Indonesia. We want to know whether taxation in
Indonesia has discouraged economic variables as channels through which tax
revenues influence economic growth or not. In order to find the causal
relationship and analyzing the tax revenues by using Engle�Granger causality test,
we use annual data of tax revenues from 1969 until 2009, which are divided into
three categories: income tax, value added tax, and property tax. The reason to
choose Engle�Granger causality test is because there is possibility of
simultaneous causality bias between tax and economic growth. The empirical
analysis shows that income tax and economic growth has two-way causal
relationship instantaneously and in the short run. Moreover, value-added tax and
economic growth are independent. Finally, property tax and economic growth
have one-way short run causal relationship running from property tax to economic
growth and one-way long run causal relationship running from economic growth
to property tax. It can be concluded that Indonesian tax system and tax rate until
now still have positive effect on economic growth. |
| first_indexed | 2024-03-13T22:11:30Z |
| format | Thesis |
| id | oai:generic.eprints.org:90771 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T22:11:30Z |
| publishDate | 2011 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:907712014-08-20T02:54:28Z https://repository.ugm.ac.id/90771/ The Relationship between Tax Revenues and Economic Growth in Indonesia , Yontu Karnindo Saragih, S.E. , Dr. Yoichi Okita ETD This paper examines the causal relationship between tax revenues and the rate of economic growth in Indonesia. We want to know whether taxation in Indonesia has discouraged economic variables as channels through which tax revenues influence economic growth or not. In order to find the causal relationship and analyzing the tax revenues by using Engle�Granger causality test, we use annual data of tax revenues from 1969 until 2009, which are divided into three categories: income tax, value added tax, and property tax. The reason to choose Engle�Granger causality test is because there is possibility of simultaneous causality bias between tax and economic growth. The empirical analysis shows that income tax and economic growth has two-way causal relationship instantaneously and in the short run. Moreover, value-added tax and economic growth are independent. Finally, property tax and economic growth have one-way short run causal relationship running from property tax to economic growth and one-way long run causal relationship running from economic growth to property tax. It can be concluded that Indonesian tax system and tax rate until now still have positive effect on economic growth. [Yogyakarta] : Universitas Gadjah Mada 2011 Thesis NonPeerReviewed , Yontu Karnindo Saragih, S.E. and , Dr. Yoichi Okita (2011) The Relationship between Tax Revenues and Economic Growth in Indonesia. UNSPECIFIED thesis, UNSPECIFIED. http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=53317 |
| spellingShingle | ETD , Yontu Karnindo Saragih, S.E. , Dr. Yoichi Okita The Relationship between Tax Revenues and Economic Growth in Indonesia |
| title | The Relationship between Tax Revenues and
Economic Growth
in Indonesia |
| title_full | The Relationship between Tax Revenues and
Economic Growth
in Indonesia |
| title_fullStr | The Relationship between Tax Revenues and
Economic Growth
in Indonesia |
| title_full_unstemmed | The Relationship between Tax Revenues and
Economic Growth
in Indonesia |
| title_short | The Relationship between Tax Revenues and
Economic Growth
in Indonesia |
| title_sort | relationship between tax revenues and economic growth in indonesia |
| topic | ETD |
| work_keys_str_mv | AT yontukarnindosaragihse therelationshipbetweentaxrevenuesandeconomicgrowthinindonesia AT dryoichiokita therelationshipbetweentaxrevenuesandeconomicgrowthinindonesia AT yontukarnindosaragihse relationshipbetweentaxrevenuesandeconomicgrowthinindonesia AT dryoichiokita relationshipbetweentaxrevenuesandeconomicgrowthinindonesia |