Abstract
This paper examines the impact of trade openness and Indonesia's fiscal policy on income inequality and economic growth. The error correction model approach was used to analyze the effect during the period 1980 to 2015. The results show that trade openness can improve inequality but at the same time impede growth. The effect of fiscal policy on reducing inequality is only generated by tax collection but is temporary. Meanwhile, government spending on infrastructure and health proved to encourage growth. On the other hand, education sector spending and tax collection can actually hamper growth.
| Original language | English |
|---|---|
| Pages (from-to) | 215-226 |
| Number of pages | 12 |
| Journal | Regional Science Inquiry |
| Volume | 10 |
| Issue number | 2 |
| Publication status | Published - Jul 2018 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities -
SDG 17 Partnerships for the Goals
Keywords
- Fiscal policy
- Growth
- Inequality
- Trade openness
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