2019
DOI: 10.22146/jieb.29033
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Do Tax Structures Affect Indonesia Economic Growth?

Abstract: This paper investigates how changes in the tax structure may affect Indonesia’s long-run economic growth.* The growth effects of the mix of income taxes and consumption taxes are examined using a set of panel growth regressions, which account for indicators of the tax structure, as well as both the accumulation of physical capital and human capital. The results suggest that income taxes may not exert a statistically significant impact on long-run growth, while consumption taxes may have a positive and statisti… Show more

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Cited by 5 publications
(5 citation statements)
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References 39 publications
(66 reference statements)
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“…In line with this research, in the long and short term, the role of taxes in China also has a positive relationship, where GDP and VAT have a positive and significant effect [8]. In Indonesia that while taxes are not the primary driver of the economy, changes to the tax structure can have an impact on long-term economic growth, As a result, it is advised to approach tax reform in Indonesia with an equitable distribution of the tax system [9]. Hypothesis The hypothesis is a provisional response to the research problem formulation, where the research problem formulation is expressed as a series of queries [10].…”
Section: Theorysupporting
confidence: 56%
“…In line with this research, in the long and short term, the role of taxes in China also has a positive relationship, where GDP and VAT have a positive and significant effect [8]. In Indonesia that while taxes are not the primary driver of the economy, changes to the tax structure can have an impact on long-term economic growth, As a result, it is advised to approach tax reform in Indonesia with an equitable distribution of the tax system [9]. Hypothesis The hypothesis is a provisional response to the research problem formulation, where the research problem formulation is expressed as a series of queries [10].…”
Section: Theorysupporting
confidence: 56%
“…Munculnya COVID-19 yang menjangkit China membawa kegiatan dagang China ke arah yang negatif sehingga berdampak pada alur dan sistem perdagangan dunia sehingga berdampak juga pada Indonesia. Menurunnya kelapa sawit dan batu bara serta impor bahan mentah lainnya dari China akan menyerang kegiatan ekspor di Indonesia sehingga akan menimbulkan turunnya harga barang tambang dan komoditas lain (Iswahyudi, 2018).…”
Section: Pendahulanunclassified
“…Tax revenue is essential to accelerate the economic development (Basirat et al, 2014;Egbunike et al, 2018;Harelimana, 2018) There is a temporary impact on the tax policy exogenous model growth is an endogenous growth model that affect permanent economic growth. There are some studies had investigated the relationship between taxation and economic growth such as Judd (1985), Stoilova (2017), Gashi et al, (2018), Iswahyudi (2018), and Milasi & Waldmann (2018). There are five channel to measure the effect of tax on the growth of the economy:…”
Section: Introductionmentioning
confidence: 99%