The Importance of Positive Externalities and Intersectoral Linkages in Determining Growth Path of Developing Economies

This paper is intended to explore the significance of intersectoral linkage in determining the growth path of developing economies. It is commonly believed that intersectoral linkages among firms and industries is importance since it provides the positive externalities that enables firms or industries to gain the increasing return to scale. Increasing return to scale is the characteristic that drives the process of growth. The paper describes the source of increasing return to scale, the relation between externalities and sectoral linkages, and the link between sectoral linkages and growth path in developing economies. The analysis of the paper is based on the literatures review. All the models reviewed suggest the importance of sectoral linkages from various points of view, and come to the similar conclusion that the weak or absence of sectoral linkages could lead developing economies to be trapped in low equilibrium economy and low growth path. The conclusion is how the government able to release the developing economies from the historical trap of low equilibrium economy and low growth path by establishing a rational policy.Keywords: increasing return to scale, externalities, sectoral linkages, growth pat

How Education Level and Household Power-RelationAffectWomenEntrepreneurial Intention: Case Study of Micro-Waqf Bank’s Revolving Fund Participants

This study aims to look at the influence of education level and household power relations on entrepreneurial aspirations in women, using the women participating in the Micro-Waqf Bank (MWB) revolving fund program in Gunung Pati, Central Java as a case study. The study uses primary data obtained from the survey, analysed with descriptive statistical techniques and Two-way ANOVA. The results show that household power-relations significantly influence women’s entrepreneurial ambitions. The greater their power in the household, the higher their entrepreneurial intentions. Meanwhile, the education level does not have a significant effect. The results of this study have important implications for women’s economic empowerment. Every program to increase entrepreneurial intentions and women’s economic empowerment needs to be balanced with social education for households about the importance of giving recognition and appreciation to the woman’srolein house hold decision-making. Adequate room for women to be active in productive economic activities needs to be provided in the household. Keywords: Women Entrepreneurial Intention, Household Power-Relation, Micro-Waqf Bank

Dealing With Bribery in an Emission Tax Scheme : Theoretical and Experimental Evidence Based on the Indonesian Case

This dissertation is stemmed from the necessity of finding the optimal mixture of emission tax policies that induces the compliance under the presence of bribery, by taking the case of Indonesia. The Indonesian government has designed the emission tax to prevent environmental degradation attributed to the production process of polluting firm. However, the implementation of emission tax may be impeded by several nonmarket issues. Firstly, there is a contradiction of interests regarding the implementation of tax between the government and the polluting firms. The firms may incline to undertake the actions against the compliance with tax regulation. Secondly, the complication of emission taxation escalates when bribery in the taxation office prevails. The prevalence of bribery is alleged to provide a disincentive for the tax compliance of the firms. Motivated by the necessity of emission tax and the nonmarket conditions expressed above, the main objective of this dissertation is to provide the clue regarding the optimal emission tax schemes that induce the compliance under pervasive bribery. In particular, this study aims to contribute to environmental policy literature by examining the role of financial reward on emission tax compliance under the presence of bribery. The existing literature mostly examine the impact of corruption and financial reward on compliance in separation, while the combined impact of the reward and bribery has not been investigated. The objectives of this dissertation are approached using game theoretical and experimental methods. These approaches are useful to predict the performance of new policy designs, where the relevant empirical data have not been established. The common critic on game theoretical approach is that the method relies heavily on the assumption that the economic agents are fully rational and driven by the benefit maximization motive. Therefore, simultaneous use of these approaches is expected to fill the gap between the prediction of optimal decisions and the actual economic behaviour. Based on the research findings, the proposed emission tax schemes under the presence of bribery and costly monitoring would be a combination of low tax rate, high sanction for evasion, combined with low financial reward for the compliant firms. Enforcement policies directed toward corrupting tax officials that eventually lead to the increase in the cost of bribery is also recommended. Theoretical findings indicate that the optimal mixture of enforcement policy on tax officials consists of a high financial reward for revealing the tax evasion and a lower sanction for taking the bribe.Der Hintergrund dieser Dissertation liegt in der Notwendigkeit zur Findung eines optimalen Mix aus Emissionssteuergesetzgebungen, die deren Einhaltung in der Gegenwart von Bestechlichkeit begünstigen, anhand des konkreten Falls Indonesien. Die indonesische Regierung hat die Emissionssteuer mit dem Ziel entworfen, die Umweltverschmutzung zu begrenzen, die aus dem Produktionsprozess verschmutzender Firmen resultiert. Die Umsetzung einer Emissionssteuer kann jedoch durch einige marktunabhängige Faktoren beeinträchtigt werden. Erstens gibt es einen Interessenkonflikt zwischen Regierung und verschmutzenden Firmen hinsichtlich der Einführung der Steuer. Demnach könnten Firmen potenziell Maßnahmen ergreifen, die nicht im Einklang mit der Steuergesetzgebung stehen. Zweitens wird die Emissionsbesteuerung zusätzlich erschwert, wenn Bestechlichkeit der Steuerbehörden gegeben ist. Das Vorhandensein von Bestechlichkeit wird als Anreiz zur Nichteinhaltung der Steuergesetze durch die Firmen angesehen. Angesichts der Notwendigkeit einer Emissionssteuer und der oben beschriebenen, marktunabhängigen Faktoren ist das Hauptziel dieser Dissertation die Beschreibung einer optimalen Emissionssteuergesetzgebung, die zu einer Einhaltung derselben angesichts allgegenwärtiger Korruption führt. Insbesondere soll diese Studie einen Beitrag zur aktuellen Umweltpolitikliteratur liefern, indem sie die Rolle von finanziellen Belohnungen bei der Einhaltung von Emissionssteuergesetzen vor dem Hintergrund von Bestechlichkeit beleuchtet. Die bisherige Literatur beschäftigt sich indes überwiegend mit den unabhängigen Einflüssen von Korruption und finanziellen Belohnungen auf die Einhaltung von Gesetzen, während der gleichzeitige Einfluss von Belohnung und Bestechung noch nicht untersucht wurde. Die Fragestellungen dieser Dissertation werden mittels spieltheoretischer und experimenteller Ansätze untersucht. Diese Methoden bieten sich an, um Prognosen zur Wirksamkeit neuartiger Gesetzgebungsmodelle zu erstellen, zu denen noch keine relevanten empirischen Beobachtungen verfügbar sind. Allgemein wird kritisiert, dass der spieltheoretische Ansatz stark auf der Annahme vollkommen rationaler und Nutzen maximierender Agenten beruht. Entsprechend kann man erwarten, dass durch die Lücke zwischen der Vorhersage optimaler Entscheidungen und tatsächlichem ökonomischem Verhalten durch die gleichzeitige Anwendung der beiden genannten methodischen Ansätze geschlossen werden kann. Basierend auf den Forschungsergebnissen bestünde das empfohlene Steuermodell unter der Annahme von Bestechlichkeit aus einer Kombination aus einem niedrigen Steuersatz, hohen Strafen für Steuerhinterziehung und einer geringen finanziellen Belohnung für Firmen, die sich an die Gesetze halten. Außerdem empfehlen sich Maßnahmen zur Durchsetzung, die auf korrupte Finanzbeamte abzielen und ultimativ zu einem höheren Kosten von Bestechlichkeit führen. Theoretische Ergebnisse zeigen, dass eine optimale Mischung von Durchsetzungsmaßnahmen mit dem Fokus auf Finanzbeamte aus hohen finanziellen Belohnungen zur Aufdeckung von Steuerhinterziehung und niedrigeren Strafen für die Annahme von Bestechungsgeldern besteht

ANALISIS DAMPAK TAX MORALE TERHADAP KEPATUHAN PAJAK UMKM DI KOTA SEMARANG

Tax morale is an intrinsic motivation to comply and pay taxes so as to contribute voluntarily to the provision of public goods. Higher tax morale will increase tax compliance. Micro, Small and Medium Enterprises (MSMEs) have an important role to supporting the regional and national economy. This study aims to analyze the impact of tax morale on MSMEs tax compliance in Semarang City. This study uses tax morale consisting of: (1) happiness, (2) religiosity, (3) environment, (4) institutional, and (5) ethics as independent variable and control variables such as: (1) gender, (2) age, (3) education, (4) marital status, (5) age of business, (6) business size and dependent variable in this study using MSMEs tax compliance. The type of data used is the primary data obtained from 117 samples of MSMEs in Semarang City as well as secondary data as supporting data in this study. Data analysis was performed by using binary logistic regression analysis with STATA 14 for Windows program. The results showed that environmental, institutional, ethical, business, and business size variables significantly influence SME tax compliance in Semarang City. While the variable is not significant effect on tax compliance in Semarang City that is variable of happiness, religiosity, gender, age, education, and marital status

An Analysis on Determinants of Energy Intensity in ASEAN Countries

ASEAN is a region with a high level of economic growth. However, ASEAN region is also faced with several important issues in the energy sector such as high energy consumption growth, fossil energy dependency, and fluctuations in energy prices. Energy efficiency is viewed as the proper way to enhance energy security. The concept of energy intensity (ratio of energy consumption per GDP) is used to describe the level of energy efficiency. The objective of the research is to analyze factors that influence energy intensity in ASEAN region. This study uses secondary data in the nine Southeast Asian countries in 2001-2014. This study employs an analysis with Arellano Bond Generalized Method of Moments (GMM) panel data to analyze factors that affect energy intensity. The results of the study find that the variable of GDP per capita and energy prices have a significantly negative effect on energy intensity. The variable of energy consumption per capita has significantly positive effect on energy intensity. The variables of trade openness and foreign direct investment have no significant effect on energy intensit

Determinants of Structural Transformation in ASEAN

This study aims to analyze the determinants of the structural transformation in ASEAN countries. This study uses quantitative panel data from 9 countries in ASEAN from 2000 to 2017, thus makes up for 162 observations. This study employs panel data regression analysis with fixed effect model approach. In this study, the shifting of sectoral value added away from agriculture sectors indicates structural transformation. In particular, sectoral value added consists of the industrial value added and service value added. The results of this study shows that dependency ratio, income per capita, education, and trade significantly affect the increase of industrial value added during observation period. On the other hand, total population, dependency ratio, income per capita, education, control of corruption, and trade significantly increase the service value added over time

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PERTUMBUHAN EKONOMI PROVINSI JAWA TENGAH PERIODE 2010-2014

The success of development in a country can be seen from its economic growth which is reflected in GDP rate. Central Java is one of the provinces in Java that has abundant natural resources and human resources, but its economic growth is lagging behind. In order to increase economic growth, the cause of changes need to be identified. The purposes of this research is to analyze the influence of capital expenditure, private investment, population, education, and health on economic growth in Central Java from 2010 to 2014. The used data include GDRP rate constant price, government capital expenditure, foreign investment and domestic investment, total population, average school years, and health facility that is hospital and public health facility. Data are processed using regression analysis of panel data with Fixed Effect Model Least Square Dummy Variabel (FEM LSDV). The results show that increasing population and education will increase economic growth significantly. An increase in private investment from year to year can significantly reduce economic growth. Increased capital expenditures and health facility are insignificant to economic growth

DETERMINANTS SELF SUFFICIENCY OF RICE IN SUPPORTING FOOD INDEPENDENCE

The research objective is to determine the future trends of rice self-sufficiency and to know the factors that influence rice self-sufficiency so as to achieve food independence. Previous research reviews rice self-sufficiency in terms of production factors. In this study, price stability, rice supply and farmers' welfare are taken into account as research variables. The results showed that the trend of analysis with quadratic models to measure rice self-sufficiency tends to increase. Variables that influence rice self-sufficiency are rice productivity, rice supply stability, application of technology and dummy during the New Order government with reform. Whereas the gap between rice price and grain price, the level of rice consumption and the welfare of farmers, does not affect rice self-sufficiency. The conclusion of this research is that to increase rice self-sufficiency, it is necessary to increase rice productivity, ensure that government rice reserves are always available so as to stabilize food supply stability, and always develop appropriate technological innovations to support increased production