Month: June 2019

IS THERE A CAUSALITY RELATIONSHIP BETWEEN LOCAL TAX REVENUE AND REGIONAL ECONOMIC GROWTH? A PANEL DATA EVIDENCE FROM INDONESIA

Khairul AMRI

Lecturer at Faculty of Islamic Economics and Business, Universitas Islam Negeri (UIN) Ar-raniry, Banda Aceh, Indonesia

Email: khairul.amri@ar-raniry.ac.id

NAZAMUDDIN

Lecturer at Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

Email: nazamuddin@unsyiah.ac.id

Raja MASBAR

Lecturer at Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

Email: raja.masbar53@gmail.com

Hasdi AIMON

Lecturer at Faculty of Economics and Business, Universitas Negeri Padang, Padang, Indonesia

Email: s3dkpl@gmail.com

Abstract

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.

Keywords: Local tax revenue, local retribution revenue, economic growth, and Panel Vector Error Correction Model

JEL classification: H71, O4
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ESTIMATE OF AN AVERAGE SITUATION OF REGIONS IN VALUE CHAINS

Evgenii LUKIN

Candidate of Sciences (Economic), Deputy Department Head, Vologda Research Center of the RAS, Russia

lukin_ev@list.ru

Abstract

The article considers an indicator that reflects an average position of industries and regions in value chains. It shows high differentiation of territorial distribution of its values in Russian economy. It determines a strong correlation between GRP per capita and an upstreamness index in the economy of Russian regions. The paper compares obtained results with the data on US economy.

Keywords: region, upstreamness, value chains, GRP

JEL classification: O18
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EVALUATING THE INVESTMENT ATTRACTIVENESS OF A REGION BASED ON THE BALANCED SCORECARD APPROACH

Vladimir MYAKSHIN

Associate professor, Nothern (Arctic) Federal University, Russia, Arkhangelsk, Naberezhnaya Severnoy Dviny 17

mcshin@yandex.ru

Vladimir PETROV

Professor, St. Petersburg State Forestry University, Russia, St. Petersburg,

Institutsky pereulok 5

wladimirpetrov@mail.ru

Abstract

This article discusses how the investment attractiveness of a region’s economic system (case study of Arkhangelsk Region) can be evaluated usingА the balanced scorecard developed and disclosed herein by the authors. It seeks to provide a rationale for the relevance and applicability of the balanced scorecard as a tool for identifying local investment-related challenges. The article further explains the importance of developing a sound mechanism for aligning the interests of the key stakeholders of investment process (private investors, local community, and public bodies). This mechanism should employ a balanced estimate of a region’s investment attractiveness which, in its turn, should rely on the target user groups’ informational needs. Having analyzed the basic methodologies being used by the investigators of the region’s investment attractiveness, we became convinced that the issue needs a more balanced representation and have therefore developed the balanced scorecard, accompanied by the user guide which is intended for the governmental authorities in charge of the measures to enhance the investment attractiveness locally. The analysis of the balanced scorecard has shown that it proves a useful tool for evaluating a region’s investment attractiveness and identifying its investment-related challenges and growth opportunities. In performing our study, we were governed by the current theories of institutional economics, region’s economy, and the theory of investment, the latter viewing the investment attractiveness through the prism of investment efforts. The results and conclusions of this study may serve as the basis for elaborating the region-level investment promotion strategies.

Keywords: investment potential, investment risks, investment climate, investment policy, investment attractiveness, investment efforts, core drivers, region’s economic system, balanced scorecard, balanced estimate

JEL classification: D92, L50, L52, L90
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