A Cointegration and Causal Analysis of the Government Revenue and Expenditure Relationship in Indonesia

Autor: Jacobus Cliff Diky Rijoly, Shella Gilby Sapulette, Jabida Latuamury Universitas Pattimura, Alfrin Ernest Marthin Usmany, Franco Benony Limba
Jazyk: English<br />Indonesian
Rok vydání: 2023
Předmět:
Zdroj: Journal of Business & Banking, Vol 12, Iss 2, Pp 267-275 (2023)
Druh dokumentu: article
ISSN: 2088-7841
2303-3460
DOI: 10.14414/jbb.v12i2.3379
Popis: This study aims to discuss the causal analysis of government revenues and expenditures in Indonesia in light of the fact that Indonesian fiscal policy significantly relies on government finance. Therefore, it can lead to fragile macroeconomic conditions. In addition, to illustrate this occurrence, the researchers used Granger causality method on data from 1971 to 2021 provided by the World Bank. This paper's findings indicate that in Indonesia, the long run or equilibrium relationship between government revenue and government expenditure goes from government expenditure to government revenue. In addition, this conclusion demonstrates that government expenditures affect government revenue.
Databáze: Directory of Open Access Journals