Economics at your fingertips  

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

Agus Sholikhan Yulianto and Anis Chariri

International Journal of Economics & Business Administration (IJEBA), 2019, vol. VII, issue 4, 343-352

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.

Keywords: Tax reform; capital expenditure; production capacity; export performance. (search for similar items in EconPapers)
JEL-codes: D24 H71 H72 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in International Journal of Economics & Business Administration (IJEBA) from International Journal of Economics & Business Administration (IJEBA)
Bibliographic data for series maintained by Marios Agiomavritis (). This e-mail address is bad, please contact .

Page updated 2020-01-02
Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:4:p:343-352