The Effect of Free Trade Zone Implementation in Batam, Bintan, and Karimun (BBK) Islands on Economic Growth and Tax Revenue of Riau Islands Province

Santoso, MuhammadHadi (2014) The Effect of Free Trade Zone Implementation in Batam, Bintan, and Karimun (BBK) Islands on Economic Growth and Tax Revenue of Riau Islands Province. Magister thesis, Universitas Brawijaya.

Abstract

Makalah ini menyelidiki pengaruh implementasi Zona Perdagangan Bebas (FTZ) di Kepulauan Batam, Bintan, dan Karimun (BBK) dalam hal pertumbuhan ekonomi dan penerimaan pajak. Menggunakan analisis regresi data panel efek tetap, saya menemukan bahwa FTZ di Kepulauan BBK memiliki dampak positif pada pertumbuhan ekonomi dan penerimaan pajak. Dampak pada pertumbuhan ekonomi dapat dijelaskan dari perspektif ekspor / impor. Setelah menerapkan FTZ, ekspor bersih Provinsi Kepulauan Riau meningkat, secara signifikan memperluas pertumbuhan ekonominya. Dampak terhadap penerimaan pajak dapat dijelaskan melalui peningkatan pajak jenis lain, seperti pajak penghasilan badan, pajak penghasilan pasal 21 (pajak ketenagakerjaan), dan pajak penghasilan final. Temuan ini menunjukkan bahwa implementasi FTZ dapat diperluas dan disalin ke daerah lain di Indonesia dengan mempertimbangkan lokasi geografis masing-masing daerah, potensi ekonomi, dan infrastruktur.

English Abstract

This paper investigates the effect of Free Trade Zone (FTZ) implementation in Batam, Bintan, and Karimun (BBK) Islands in terms of economic growth and tax revenue. Using fixed effect panel data regression analysis, I found that a FTZ in the BBK islands has a positive impact on both economic growth and tax revenue. The impact on economic growth can be explained from an export/import perspective. After implementing an FTZ, the net export of the Riau Islands Province increased, significantly expanding its economic growth. The impact on tax revenue can be explained through the increase in other kinds of taxes, such as corporate income tax, income tax article 21 (employment tax), and final income tax. These findings suggest that the implementation of an FTZ can be expanded and copied to other regions in Indonesia by considering each region`s geographical location, economic potential, and infrastructure.

Item Type: Thesis (Magister)
Identification Number: TES/382.71/SAN/e/041406997
Subjects: 300 Social sciences > 382 International commerce (Foreign trade) > 382.7 Tariff policy
Depositing User: Endro Setyobudi
Date Deposited: 18 Nov 2014 10:25
Last Modified: 18 Nov 2014 10:25
URI: http://repository.ub.ac.id/id/eprint/157336
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