Effect of Governance Quality and Tax Holiday on Foreign Direct Investment and Economic Growth in Indonesia

Subadhi, Johanes Dwi (2016) Effect of Governance Quality and Tax Holiday on Foreign Direct Investment and Economic Growth in Indonesia. Magister thesis, Universitas Brawijaya.

Abstract

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English Abstract

This study aims to examine the relationship between governance quality, tax holiday, foreign direct investment, and economic growth in Indonesia. This study is trying to answer the question to what extent governance quality and tax holiday give effect to foreign direct investment and to what extent foreign direct investment give effect to economic growth. This research is using a quantitative method which involve multiple linear regression and simple linear regression and employ SPSS software. It analyzes the national data from year 2001 – 2014 which is come from some institutions. They are governance quality data which is come from World Bank and consisting of six indicators, voice and accountability (VA), political stability and absence of violence/terrorism (PV), government effectiveness (GE), regulatory quality (RQ), rule of law (RL), control of corruption (CC). Further, tax holiday (TH) is a minister of finance regulation which is offered to public from 2011. Then foreign direct investment and economic growth where the data is come from BPS. The research findings showing that in statistical measurement VA and RQ have negative and significant effect to foreign direct investment. PV, CC, and TH are found to have positive and significant effect to foreign direct investment. GE and RL have positive effect but not significant to foreign direct investment. Further, foreign direct investment is positively and significantly affecting the economic growth. According to the result, it is recommended if the government can maintain the indicators which have positive effect to increase foreign direct investment, they are PV, GE, RL, and CC. Meanwhile, because VA has the dominant effect and the effect is negative and significant, it is suggested if government can reduce the VA or public participation in a democracy process.

Item Type: Thesis (Magister)
Identification Number: TES/338.9/SUB/e/2016/041710207
Uncontrolled Keywords: ECONOMIC DEVELOOMENT - GOVERNMENT POLICY, INVESTMENTS, FOREINGN, CORPORATIONS - TAXATION, TAX INCENTIVES
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HJ Public Finance
Divisions: S2/S3 > Magister Ilmu Administrasi Publik, Fakultas Ilmu Administrasi
Depositing User: Nur Cholis
Date Deposited: 27 Apr 2018 07:52
Last Modified: 26 Nov 2021 06:25
URI: http://repository.ub.ac.id/id/eprint/9957
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