DOES TRADE OPENNESS AND FISCAL POLICY AFFECT INEQUALITY AND ECONOMIC GROWTH? A STUDY IN INDONESIA
Mohammad Khusaini (),
Setyo TRI Wahyudi () and
Zamrud SISWA Utama
Additional contact information
Mohammad Khusaini: Dr. in Economics, Faculty of Economic and Business, Brawijaya University-INDONESIA
Setyo TRI Wahyudi: Ph.D in Economics, Faculty of Economic and Business, Brawijaya University-INDONESIA
Zamrud SISWA Utama: Master of Economics Student at Faculty of Economic and Business, Brawijaya University-INDONESIA
Regional Science Inquiry, 2018, vol. X, issue 2, 215-226
This paper examines the impact of trade openness and Indonesia's fiscal policy on income inequality and economic growth. The error correction model approach was used to analyze the effect during the period 1980 to 2015. The results show that trade openness can improve inequality but at the same time impede growth. The effect of fiscal policy on reducing inequality is only generated by tax collection but is temporary. Meanwhile, government spending on infrastructure and health proved to encourage growth. On the other hand, education sector spending and tax collection can actually hamper growth.
Keywords: Trade Openness; Inequality; Growth; Fiscal Policy (search for similar items in EconPapers)
JEL-codes: E62 F63 H50 O40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:x:y:2018:i:2:p:215-226
Access Statistics for this article
Regional Science Inquiry is currently edited by Dr Christos Ap. Ladias
More articles in Regional Science Inquiry from Hellenic Association of Regional Scientists
Bibliographic data for series maintained by Dimitrios K. Kouzas ().