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The Role of Indonesian Tax Reform in Boosting Export Performance of Manufacturing Sectors

Author

Listed:
  • Agus Sholikhan Yulianto
  • Anis Chariri

Abstract

Purpose: This study aims to develop and explore the regulation role of Indonesian tax reform (ITR) by referring to the tax incidences theory. This study, therefore, focuses on the potential forward and backward shifting impacted by the tax reform. ITR influences corporate capital expenditures, production capacity, and labor cost proportion to total production cost. Design/methodology/approach: The study uses data from the manufacturing sector listed in the Indonesian capital market from 2004 to 2013. Data is analyzed using panel data regression and includes the common, fixed and random effect model. Findings: This study reveals that ITR directly does not influence export performance nor indirectly through the forward shifting effect. On the other hand, ITR is effective in boosting Indonesian manufacturing export performance through the backward shifting. Capital expenditure furthermore plays a crucial factor in ITR success. Originality/value: This study highlights that Indonesian export performance has increased followed the tax reformation.

Suggested Citation

  • Agus Sholikhan Yulianto & Anis Chariri, 2019. "The Role of Indonesian Tax Reform in Boosting Export Performance of Manufacturing Sectors," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 343-352.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:4:p:343-352
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    References listed on IDEAS

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    Cited by:

    1. Dejan Ravšelj & Aleksander Aristovnik, 2020. "The Impact of Public R&D Subsidies and Tax Incentives on Business R&D Expenditures," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 160-179.

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    More about this item

    Keywords

    Tax reform; capital expenditure; production capacity; export performance.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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