Open AccessRegional economic growth based on tourism, tax policy, and budget aspects
Author(s) -
Dani Rahman Hakim,
Siti Ratna Sari Dewi
Publication year - 2021
Publication title -
jurnal ekonomi dan bisnis
Language(s) - English
Resource type - Journals
eISSN - 2528-0147
pISSN - 1979-6471
DOI - 10.24914/jeb.v24i2.4174
Subject(s) - tourism , revenue , tax revenue , economics , local government , investment (military) , government (linguistics) , public economics , tax policy , economic policy , business , tax reform , finance , geography , linguistics , philosophy , politics , political science , law , archaeology
This study analyzes the determinants of regional economic growth and local government revenue (PAD) based on tourism, taxation, and budget policies in Kuningan District. This study uses the monthly data from 2015-2019 with 60 numbers of observations in total. Using the structural equation modeling partial least square (SEM-PLS), this study found that tourism, taxation, and budget policies directly affected regional economic growth. Neither does PAD affect regional economic growth nor mediate the indirect effect of tourism and taxation policies on economic growth. On the other hand, the budget policy can not moderate the influence of PAD on economic growth. This study also proves that the taxation policy reflected by the online-based tax collection system and the local tax increase budget positively affects PAD, while tourism can not affect it. This study implies that the local government of Kuningan need to focus on maximizing tourism sectors by directing the investment, budgets, and policies to develop its supporting industries.