scholarly journals The Effect of Realization of Regional Tax Revenue and Regional Retribution on Unemployment Rate With Moderation of Capital Expenditure

Author(s):  
Prasetyo Utomo ◽  
Priyanto Priyanto ◽  
Subiyantoro Subiyantoro ◽  
Srimiatun Srimiatun
2021 ◽  
Vol 10 (1) ◽  
pp. 11-18
Author(s):  
Yoga Amanda ◽  
Zamzami Zamzami ◽  
Selamet Rahmadi

This study aims to determine and analyze: 1). Changes that occur in capital expenditure, unemployment, and the number of poor people in Tebo Regency during 2004-2018, 2). Effect of capital expenditure and unemployment rates on poverty levels in Tebo Regency during 2004-2018. The data analysis method used in this study uses the formula of development and multiple linear regression. Based on the results of research during 2004- 2018 in Tebo Regency, the average capital expenditure increases 20.99 percent every year, the number of unemployed people has increased 28.57 percent every year and the average number of poor people has decreased 0, 42 percent every year. Capital expenditure and unemployment rate influence reducing the level of poverty in Tebo Regency during 2004-2018 with a regression coefficient value of capital expenditure and the unemployment rate which has a negative regression coefficient.  Keywords: Capital expenditure, Poverty rate, Unemployment rate


2022 ◽  
Vol 5 (1) ◽  
pp. 25-47
Author(s):  
Topbie Joseph Akeerebari

This study investigated the effect of insufficient currency in circulation on the rate of inflation and unemployment in Nigeria: The Buhari’s Administration Experience; using annual time-series data ranging from 1985 to 2020. In achieving this task, the study was disaggregated into two models: model 1 utilizing Vector Error Correction Model to analyse the relationship between fiscal variables (government total expenditure, government tax revenue, and export) and unemployment rate. It was revealed from the unit root of Augmented Dickey-Fuller test that none of the (fiscal) variables was stationary at level, but they were all stationary after 1st Differencing. This made it necessary for the study to apply Johansen co-integration test which the estimated result indicated 1 co-integration equation as evidenced by Trace statistic. This also, necessitated the application of Vector Error Correction Model (VECM), and it was observed that it took 61.71% annual speed of adjustment towards long-run equilibrium from short-run disequilibrium for unemployment rate to return to equilibrium after a shock to fiscal variables. The results further explained that government total expenditure, and government tax revenue, had negative and insignificant impact on unemployment rate respectively, thereby reducing unemployment rate. Similarly, the estimated result indicated that export had positive impact on unemployment thereby increasing unemployment rate within the period under study. Similarly, in analysing monetary variables (money supply, exchange rate and prime lending rate) in model 2: Phillip-Peron unit root test was conducted and it was confirmed that the variables were of mixed order of integration which necessitated the employment of ARDL technique. The ARDL bounds testing result revealed that a long-run relationship existed between monetary variables, and inflation. It was found, in the long-run, that money supply caused inflation rate to rise. More so, the result further revealed that present level of exchange rate decelerated inflation rate in both long-run and short-run. While, it was further observed that the one-year lag and two-year lag of exchange rate increased rate of inflation in both log-run and short-run respectively. The estimated result further revealed that the present level of prime lending rate minimised the rate of inflation in the long-run and short-run. Whereas, similar results were further confirmed in the one-year lag and two-year lag that prime lending rate reduced inflation rate in both log-run and short-run. As a result of these findings, with respect to model 1; the study recommended that government should maintain the level of its expenditure and tax revenue as this reduced unemployment rate, and it should lower trade costs so that demand for labour would increase in the export industry, this would make aggregate unemployment rate to reduce. With respect to model 2; it recommended the adoption of contractionary monetary policy that would minimise the amount of money supply that caused long-run effect on inflation in the system. Furthermore, there should be proper maintenance of fixed exchange rate policy that will make exchange rate regime overcome non-military forces of demand and supply in exchange rate market, this will help maintain low rate of inflation.


Author(s):  
Tria Sandi Kurniawan ◽  
Dyah Wulan Sari ◽  
Dyah Reni Irmawati

This study examines the effect of the realization of government spending consisting of goods expenditure, capital expenditure and employee expenditure on tax revenue in Indonesia. In this study, we use four analytical methods that consist of  Granger Test, Partial Adjustment Model (PAM), Error Correction Model (ECM) and Vector Autoregression (VAR). The result shows that the realization of goods and employee expenditure are significant determinant of the tax revenue. Further examination shows that the shocks on goods and employee expenditure have a positive impacts toward tax revenue. However the shock effect are different on those variables. On the shock to goods expenditure, the tax revenue response will occur directly, in contrast to shock on employee expenditure that requires time lag. This study also find that between PAM and ECM, the ECM model is more appropriate to be used to explain the effect of government spending on tax revenue in Indonesia.  


2014 ◽  
Vol 9 (1) ◽  
pp. 102-112
Author(s):  
E Kaakunga

The purpose of this study was to shed light on the impact of fiscal policy on growth.  Governments undertake expenditures to pursue a variety of goals, only one of which may be an increase in per capita income.  Using the framework of endogenous growth models which seeks to explain sustained long term growth, we showed how a change in the mix of public spending in favour of productive activities could lead to a steady state growth rate.  The explanatory variables, which affect growth positively, include capital expenditure, tax revenue and the terms of trade.  The share of private consumption in GDP, fiscal deficit, the share of total public debt in GDP and current expenditure relates negatively to the growth rate of output.


2021 ◽  
Vol 4 (1) ◽  
pp. 433-442
Author(s):  
Triyas Ayu Hadi Setiowati ◽  
Ris Yuwono Yudo Nugroho

The purpose of this study is to analyze the impact of monetary policy as seen from the BI Rate and the money supply (M2, and fiscal policy as seen from government spending and tax revenue in influencing the unemployment rate in Indonesia. The approach used in this research is quantitative. The data used are the BI Rate, the money supply (M2), government spending, tax revenue and unemployment in the form of time series data in an annual form from 1995 to 2019. The method used in this study is the Vector Auto analysis model. Regression (VAR). The stages used in this research test are a stationarity test, optimum lag test, VAR stability test, impulse response test, and variance decomposition test. The results of the impulse response indicate that the unemployment variable responds most to the shock of the interest rate variable (monetary policy) compared to other variables. The results of variance decomposition indicate that the contribution given by the BI Rate to the unemployment rate is the most significant relative to the contribution given by the variable money supply (M2), government spending, and tax revenue


2021 ◽  
Vol 18 (4) ◽  
pp. 527-538
Author(s):  
Ebere Ume Kalu ◽  
Chinwe Achike ◽  
Ann Ogbo ◽  
Wilfred Ukpere

This paper examined the growth and unemployment linkage from a gender-classification perspective using the Nigerian economic environment. The autoregressive distributed lag model in its baseline form, the bound test, and error correction representation were used as the estimation approach. Annualized time series spanning 1981 to 2017 were used for the variables of interest. Generally, it was found that female unemployment has a positive significant influence on GDP growth rate in Nigeria, while youth unemployment negatively and significantly influences GDP. It was also found that male unemployment does not significantly affect the GDP growth rate in Nigeria. In the long run, the main variables influencing GDP growth rate within the context of this study include unemployment rate, ratio of labor force size to the national population, female unemployment rate, and youth unemployment rate. The error correction representation and the bound test estimates confirm that growth adjusts to the dynamics of the studied unemployment variables. The study advocates for an increase in government capital expenditure, as this is theoretically and practically known to create new jobs. This spending should go into real and core productive sectors that would create upstream and downstream jobs opportunities.


2020 ◽  
Vol 20 (1) ◽  
pp. 19
Author(s):  
Priyo Hari Adi ◽  
Eviniar Nugraheni

<em><span>The purpose of this study is to identify the determinants of local g</span><span lang="IN">overnmen</span><span lang="EN-ID">t</span><span lang="IN">’s financial </span><span>performance</span><span>. This research </span><span lang="IN">employs</span><span lang="IN">a</span><span> meta-analysis technique with a sample c</span><span lang="IN">onsisting of</span><span> 33</span><span> <span lang="IN">articles</span></span><span> from academic journals, </span><span lang="IN">graduate and undergraduate students’ theses </span><span lang="IN">reporting on </span><span>local government’</span><span lang="IN">s financial performances</span><span lang="EN-ID"> in Indonesia</span><span lang="IN"> published from 2006 to 2016</span><span>. The results of the study </span><span lang="IN">demonstrate </span><span>that</span><span lang="IN"> there are five</span><span> factors affecting </span><span lang="IN">local government’s </span><span lang="IN">financial</span><span> performance</span><span lang="IN">, </span><span lang="EN-ID">that is</span><span>the level of </span><span lang="IN">the region’s </span><span>wealth, </span><span lang="IN">the </span><span>size of</span><span lang="IN"> the</span><span> local government, </span><span>leverage, local tax revenue and audit findings</span><span>. </span><span lang="IN">On the other hand, </span><span>the dependence level,</span><span>capital expenditure, and legislative size</span><span lang="IN"> are not shown to be factors local government’s financial </span><span>p</span><span lang="IN">erformance</span><span>.</span></em>


Author(s):  
Felix Omene ◽  

This study is carried out to empirically examine the effect of economic policies on unemployment and poverty in Nigeria between 1970-2019. The persistent and high level of poverty in Nigeria accompanied by severe unemployment despite the adoption and implementation of various economic policies in terms of fiscal and monetary policies is the motivation behind this study. The objective of the study is to examine how effective economic policies have been in terms of fiscal and monetary policies in curbing unemployment and poverty incidence. The variables used are Poverty index (POV), Unemployment Rate (UMP), fiscal policy instruments in terms of Government expenditure (GEX), Tax and Public Debt, Monetary policy instruments in terms of monetary policy rate (MPR), interest rate (INR) and money supply (MS). Time series dynamic analysis was used to analyses the impact of these macroeconomic instruments on poverty and unemployment. The Auto Regressive Distributed Lag (ARDL) Model was used to examine the short-run, interim and long-run effect of economic policies on unemployment and poverty between 1970-2019. Preliminary test such as stationarity test, cointegration test and trend analysis were conducted before estimation. The evidences from various econometrics analyses from this study revealed that, macroeconomic policies such as money supply, government capital expenditure, unemployment rate and interest rate have a statistically significant impact on poverty level in Nigeria from 1970-2019. The implication of this is that an increase in money supply and government expenditure has a negative effect on poverty level but an increase in unemployment rate and inflation rate will lead to higher poverty level in Nigeria since unemployment rate has a positive and significant impact on poverty level. The recommendations made include; that, since government capital expenditure has a negative impact on poverty level, emphasis should be laid on increasing government capital expenditure especially those meant for development programs and projects to enhance employment which will in turn reduce poverty level in the country.


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