IIJSE
Vol 7 No 1 (2024): Sharia Economics

The Role of Fiscal Policy in Economic Growth in Indonesia

Saragih, Wike Ardinawati (Unknown)
Tanjung, Ahmad Albar (Unknown)
Syafii, M. (Unknown)



Article Info

Publish Date
02 Mar 2024

Abstract

This research aims to analyze the influence of economic variables on Indonesia's economic growth in the short and long term. In this analysis, four main economic variables are evaluated: Goods Expenditures, Taxes, Subsidies, and Human Capital. The research results show that goods spending has a positive but not significant influence on economic growth, both in the short and long term. Meanwhile, taxes show a positive and significant influence on economic growth in both periods. However, subsidies are proven to have a negative and significant effect, indicating that providing subsidies may affect economic growth negatively in the short and long term. Apart from that, Human Capital also shows a negative and significant influence, highlighting the importance of investment in human resources to support sustainable economic growth in Indonesia. These findings provide valuable insights for economic policy that can be used to design more effective strategies for increasing Indonesia's economic growth.

Copyrights © 2024






Journal Info

Abbrev

iijse

Publisher

Subject

Economics, Econometrics & Finance

Description

The Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) is Sharia Economics Journal published by Sharia Economics Department Institut Pesantren KH. Abdul Chalim, Mojokerto. The Journal focuses on the issues of Sharia Economics, the History of Islamic Economic Thought, Islamic Law, Local ...