IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i5p693-697.html
   My bibliography  Save this article

The Impact of Tax Revenue on Economic Growth: Evidence from Indonesia

Author

Listed:
  • Dwi Orbaningsih

    (Associate Professor, Faculty of Economics and Business, Gajayana University of Malang, Indonesia)

  • Agus Eko Sujianto

    (Professor, Faculty of Economics and Islamic Business, Sayyid Ali Rahmatullah State Islamic University, Tulungagung, Indonesia)

Abstract

Theoretically and empirically explain that tax revenue has an impact on economic growth. This study is intended to conduct a review of tax revenue and economic growth in Indonesia. Research data was collected from the World Bank from 1972 to 2019. The results of this study indicate that tax revenues can significantly increase economic growth, and the correlation of tax revenues with economic growth is strong so that it is recommended for the government to continue fiscal policy with strict management to avoid the bad consequences of the policy.

Suggested Citation

  • Dwi Orbaningsih & Agus Eko Sujianto, 2022. "The Impact of Tax Revenue on Economic Growth: Evidence from Indonesia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 693-697, May.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:5:p:693-697
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-5/693-697.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/the-impact-of-tax-revenue-on-economic-growth-evidence-from-indonesia/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William G. Gale & Aaron Krupkin & Kim Rueben, 2015. "The Relationship Between Taxes and Growth at the State Level: New Evidence," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(4), pages 919-942, December.
    2. Gareth Myles, 2000. "Taxation and economic growth," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 141-168, March.
    3. Engen, Eric M. & Skinner, Jonathan, 1996. "Taxation and Economic Growth," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(4), pages 617-642, December.
    4. Maria O. Kakaulina, 2017. "Visual Representation of Laffer Curve Factoring in Implications of Capital Outflow," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 3(2), pages 103-114.
    5. Temel Gurdal & Mucahit Aydin & Veysel Inal, 2021. "The relationship between tax revenue, government expenditure, and economic growth in G7 countries: new evidence from time and frequency domain approaches," Economic Change and Restructuring, Springer, vol. 54(2), pages 305-337, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kalaš Branimir & Mirović Vera & Andrašić Jelena, 2017. "Estimating the Impact of Taxes on the Economic Growth in the United States," Economic Themes, Sciendo, vol. 55(4), pages 481-499, December.
    2. Nicholas Apergis, 2015. "Labor Income Tax and Output in a Panel of Central and Eastern European Countries: A Long-Run Perspective," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 1-12, March.
    3. Smedoiu Popoviciu Alexandra & Horobet Alexandra & Belascu Lucian, 2021. "Taxing the digital economy – rethinking Romania’s prospects," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 15(1), pages 338-351, December.
    4. Gheorghița DINCĂ & Marius Sorin DINCĂ & Bardhyl DAUTI & Mirela Camelia BABA & Cătălina POPIONE, 2020. "Cyclicality of Fiscal Policy in the European Union," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 75-96, March.
    5. Cristina BOROVINA (COJOCARU), 2016. "Economic Growth And Taxation In Central And Eastern Europe," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 15(1), pages 77-86.
    6. Cruz-Martinez, Gibran, 2021. "Universal Social Pensions Are Unaffordable … Not! Testing the Unaffordability Hypothesis in Latin America and the Caribbean," SocArXiv ne9rw, Center for Open Science.
    7. Yawovi Mawussé Isaac Amedanou, 2019. "Optimal Taxation and Economic Growth in Togo: Empirical Investigation in Time Series [Taxation Optimale et Croissance Economique au Togo : une Evidence Empirique en Séries Temporelles]," Post-Print hal-01990213, HAL.
    8. Yaya KEHO, 2011. "Tax Structure and Economic Growth in Cote dIvoire: Are Some Taxes Better Than Others?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 1(4), pages 226-235, December.
    9. Palić Irena & Žmuk Berislav & Grofelnik Barbara, 2017. "The long-run impact of personal income taxation on economic development: Evidence from Croatia," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 3(1), pages 35-44, June.
    10. Alfò, Marco & Carbonari, Lorenzo & Trovato, Giovanni, 2023. "On the effects of taxation on growth: an empirical assessment," Macroeconomic Dynamics, Cambridge University Press, vol. 27(5), pages 1289-1318, July.
    11. NANTOB, N'Yilimon, 2014. "Taxation and Economic Growth : An Empirical Analysis on Dynamic Panel Data of WAEMU Countries," MPRA Paper 61370, University Library of Munich, Germany, revised 30 Jan 2015.
    12. Debasis Bandyopadhyay & Xueli Tang, 2011. "Parental nurturing and adverse effects of redistribution," Journal of Economic Growth, Springer, vol. 16(1), pages 71-98, March.
    13. Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2001. "Personal Income Taxes and the Growth of Small Firms," NBER Chapters, in: Tax Policy and the Economy, Volume 15, pages 121-148, National Bureau of Economic Research, Inc.
    14. Martin Zagler & Georg Dürnecker, 2003. "Fiscal Policy and Economic Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 397-418, July.
    15. Lutz Hendricks, 2001. "Growth, Death, and Taxes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(1), pages 26-57, January.
    16. Sarah Nizamani, 2020. "Higher Taxes Reduce Economic Growth: Overwhelming International Evidence," PIDE Knowledge Brief 2020:14, Pakistan Institute of Development Economics.
    17. Wang, David Han-Min, 2007. "Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 380(C), pages 278-286.
    18. Ekpeyong, Paul & Adewoyin, David, 2023. "Financial development, taxation and economic growth in sub-sahara africa," MPRA Paper 117739, University Library of Munich, Germany.
    19. Emmanuel Dodzi K. Havi & Patrick Enu, 2014. "The Effect of Fiscal Policy and Monetary Policy on Ghana’s Economic Growth: Which Policy Is More Potent?," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 3(2), pages 61-75.
    20. Morris M. Kleiner & Hwikwon Ham, 2002. "Do Industrial Relations Institutions Impact Economic Outcomes?: International and U.S. State-Level Evidence," NBER Working Papers 8729, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:5:p:693-697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.