Tax Revenue Convergence Among Provinces in Indonesia.

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Date: May-August 2020
Publisher: American-Eurasian Network for Scientific Information
Document Type: Report
Length: 2,904 words
Lexile Measure: 1400L

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Abstract :

In the era of fiscal decentralization, the regional government carries out various efforts to increase regional revenues, especially regional taxes. However, inequality still occurs in regional development has an impact on the performance of local tax revenues. There are have been few studies on fiscal convergence in Indonesia. The purpose of this study was to determine and analyze the sigma convergence and beta convergence of provincial tax revenues in Indonesia. This study used panel data of 33 provinces in Indonesia with the period 2010-2017. The analysis method used sigma convergence and beta convergence. Variables used include tax revenue and per capita GRDP. The result of the study show that there is the existence sigma convergence of tax revenue. Both absolute and conditional convergence on tax revenue have not existed. GDP per capita has an insignificant effect on tax revenue. These result imply that during the era of fiscal decentralization, there was an imbalance in tax revenues between provinces in Indonesia. Keywords: tax revenue, per capita GRDP, sigma convergence, beta convergence

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Source Citation   

Gale Document Number: GALE|A644543693