Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

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Dynamics of Corruption, Government Expenditures, Consumption and Taxes in Indonesia: Macroeconomic Model Simulation

Authors
Regina Niken Wilantari1, *, Eddy Priyanto2, Zainuri3, Muhamad Annas4, Diah Rusminingsih5, Suryaning Bawono6
1Economics Department, Faculty of Economics and Business, University of Jember, Jember, Indonesia
2Accounting Department, STIE Jaya Negara Tamansiswa Malang, Malang, Indonesia
3Economics Department, Faculty of Economics and Business, University of Jember, Jember, Indonesia
4Economics Department, Faculty of Economics and Business, University of Jember, Jember, Indonesia
5Management Department, STIE Jaya Negara Tamansiswa Malang, Malang, Indonesia
6Management Department, STIE Jaya Negara Tamansiswa Malang, Malang, Indonesia
*Corresponding author. Email: reginanikenw.feb@unej.ac.id
Corresponding Author
Regina Niken Wilantari
Available Online 11 January 2024.
DOI
10.2991/978-94-6463-346-7_43How to use a DOI?
Keywords
— Corruption; Government Spending; Consumption; Taxes; Indonesia
Abstract

This research aims to examine the impact of corruption and government spending on the level of consumption of Indonesian society, both household consumption and government consumption. Secondary data from the World Bank and International Transparency is the basis for this model to estimate Corruption, Government Expenditure, Consumption, and Taxes in Indonesia. This research study took place over 20 years from 2000 to 2020, and an “autoregressive vector” was applied to describe the relationship between one variable and another. We apply the multivariate regression method to examine the relationship between the variables Corruption, Government Spending, Consumption, and Taxes in Indonesia. We found that Indonesia is a country that has great potential to develop into one of the largest economies in the world. However, one of the main obstacles hindering Indonesia’s economic growth is corruption. Corruption is the practice of abusing public power for personal or certain group interests. Corruption can harm a country’s economy in various ways. Corruption can reduce the efficiency and effectiveness of government spending. Corruption can reduce state revenues from the tax sector. Corruption can reduce incentives to invest and innovate. Corruption can reduce public trust in the government and state institutions.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
11 January 2024
ISBN
978-94-6463-346-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-346-7_43How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Regina Niken Wilantari
AU  - Eddy Priyanto
AU  - Zainuri
AU  - Muhamad Annas
AU  - Diah Rusminingsih
AU  - Suryaning Bawono
PY  - 2024
DA  - 2024/01/11
TI  - Dynamics of Corruption, Government Expenditures, Consumption and Taxes in Indonesia: Macroeconomic Model Simulation
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 230
EP  - 236
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_43
DO  - 10.2991/978-94-6463-346-7_43
ID  - Wilantari2024
ER  -