Khairul Amri, Nazamuddin, Raja Masbar, Hasdi Aimon
The main objective of the study is to investigate the causal relationship of economic growth, local tax revenue, and local retribution revenue in Indonesia. A panel data set of 24 provinces over the period of 2003-2015, and then, Pedroni's and Kao's Co-integration test, Panel Vector Error Correction Model (PVECM) and Granger causality test were applied to analyze the relationship between the variables. The finding of the study indicates that in the long run, there would be a negative relationship between local tax revenue and regional economic growth and a positive and significant relationship between local tax revenue and local retribution revenue. Granger causality test proved that there is bi-directional causality between local tax revenues and economic growth, and uni-directional causality running from local retribution revenue to economic growth and local tax revenue. © 2019 Hellenic Association of Regional Scientists. All rights reserved.
Faculty of Islamic Economics and Business, Universitas Islam Negeri (UIN) Ar-raniry, Banda Aceh, Indonesia; Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia; Faculty of Economics and Business, Universitas Negeri Padang, Padang, Indonesia
