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Examining the Relationship Between Tax Revenue and Economic Growth in Indonesia Through the Endogenous Growth Model

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Causality analysis reveals tax revenue and economic growth influence each other, indicating systemic interdependence.

The study found that tax revenues significantly boost economic growth in Indonesia, and vice versa.
Using the Toda-Yamamoto method, the results indicate a bidirectional causality between tax revenue and economic growth.
The analysis employed a vector autoregression approach with data covering 1983 to 2021 to assess economic relationships.
Keywords such as foreign direct investment and total factor productivity play a crucial role in the endogenous growth model.

Yossinomita et al. (2025) studied this question.

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