Open AccessAnalysis of Indonesian Tax Revenue
Author(s) -
Amalia Wijayanti,
Firmansyah Firmansyah
Publication year - 2017
Publication title -
afebi economic and finance review
Language(s) - English
Resource type - Journals
ISSN - 2548-527X
DOI - 10.47312/aefr.v1i01.15
Subject(s) - economics , monetary economics , revenue , tax revenue , government revenue , inflation tax , exchange rate , inflation (cosmology) , short run , error correction model , government spending , econometrics , macroeconomics , finance , monetary policy , cointegration , market economy , physics , theoretical physics , welfare
This study analyzes the long-run and short-run effect of macroeconomic factors, such as real Gross Domestic Product (GDP), inflation rate, exchange rate and government spending on Indonesia’s tax revenue during 1976-2013, by utilizing the Error Correction Model (ECM). The finding of the study demontrates that in the long-run; the real GDP, exchange rate, and government spending affect Indonesia’s tax revenue, except the inflation rate. In short-run, Indonesia’s tax revenue statisically affected by government spending, while others variable do not influence Indonesia’s tax revenue. Error Correction Term (ECT) coefficient is 0.221, explains incompatibility tax revenue occur in long-run is corrected of 22 percent in one period. JEL Classification: E01, E20, H20 Keywords: Error Correction Model, Macroeconomic, Tax revenue