Articles

Tax Revenue and Human Development Index in the Seven ASEAN Countries

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This research is motivated by curiosity about tax revenues and human development indices in 7 (seven) ASEAN countries that are influenced by tax revenues. The aim of this study is to show the impact of taxes on the Human Development Index in 7 ASEAN countries. Examples of this study include Indonesia, Malaysia, the Philippines and Thailand, Myanmar, Cambodia, and Vietnam. The second data used in this study covers the period from 2010 to 2023. The regression of the panel data was used in the processing of the study data. At the same time, this study significantly illustrates the influence of independent variables on related variables. Variable inflation had a significant negative impact on tax revenues, while variable market capitalization and tourist visits had a positive and significant correlation with tax revenues. Tax revenues also have a positive impact on the economic growth of ASEAN countries (Indonesia, Malaysia, the Philippines, Thailand, Myanmar, Cambodia and Vietnam).

The Level of Development and Tax Revenues in the Association of Southeast Asian Nations

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In this study, three distinct panel models, namely the Pool Ordinary Least Square (OLS), Fixed Effect (FE), and Random Effect (RE) models, were utilized to investigate the impact of foreign direct investment, trade openness, inflation rate, proportion of value added in agriculture, proportion of value added in industry, civil liberties, political rights index, official development assistance, and human development index on tax revenue in the six ASEAN countries, namely Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, over the period of 2005 to 2021. The FE model was deemed more appropriate than the Pooled OLS model, as indicated by the FE test. Furthermore, a Hausman test was conducted, which revealed that the FE model was more suitable than the RE model. Regarding the empirical findings of the fixed effects (FE) model, it was observed that four indicators, namely FDI, TRADE, INF, and HDI, exhibit a statistically positive correlation with tax revenue. This implies that an increase in these variables would facilitate the promotion of tax revenue. Conversely, two variables, ARG and CIVLIB, despite exhibiting statistically significant correlations with tax revenue, demonstrate negative effects. This leads to the conclusion that an increase in these indicators would result in a decline in tax revenue.