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

Author

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  • 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
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    References listed on IDEAS

    as
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    3. 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.
    4. Gareth Myles, 2000. "Taxation and economic growth," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 141-168, March.
    5. 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.
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