IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Lessons From Previous Taxes’ Studies To Indonesian Local And Regional Governments After Fiscal Decentralization

Listed author(s):
  • KOdrat Wibowo


    (Department of Economics, Padjadjaran University)

One consequence of Indonesian fiscal decentralization is that local governments will have to seek additional revenues coming from their own resources, especially local taxes. For the first year of the implementation of decentralization alone, they had authorized approximately 1000 new taxes and charges in order to increase revenues with hoping these taxes would help to boost their local economic growth. The effects of taxes on the economic growth have been an interesting topic for decades in all around the nation. However, empirical studies of the relationship between taxes and economic growth have produced inconsistent results. This paper attempts to study the effect of taxes on economic growth by conducting a quite massive literature review of the relationship between taxes and economic growth. Tax variables in the state level studies are shown to have ambiguous effects on the economic growth. On the other hand, tax variables in international level studies are generally shown to have a negative effect on economic growth. The policymakers in Indonesian local governments need to be careful in designing a new tax structures after fiscal decentralization. Imposing new taxes to pump up revenues with hoping that it would help boosting the economic growth or improving the economic performance should also consider the fact that taxes tend to have a negative effect on economic growth.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: First version, 2004
Download Restriction: no

Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200402.

in new window

Length: 28 pages
Date of creation: Feb 2004
Date of revision: Feb 2004
Handle: RePEc:unp:wpaper:200402
Contact details of provider: Postal:
Jalan Cimandiri No.6, Bandung 40115

Phone: (062)022-4204510
Fax: (062)022-4204510
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Yamarik, Steven, 2000. "Can tax policy help explain state-level macroeconomic growth?," Economics Letters, Elsevier, vol. 68(2), pages 211-215, August.
  2. Blane Lewis, 2003. "Tax And Charge Creation By Regional Governments Under Fiscal Decentralisation: Estimates And Explanations," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(2), pages 177-192.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:unp:wpaper:200402. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arief Anshory Yusuf)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.