Main Article Content
Abstract
This study aims to provide empirical evidence regarding the influence of tax revenue, revenue-sharing funds from natural resources, and government expenditure on the inclusive economic growth of district and city governments in Indonesia, and the role of institutional quality in moderating these relationships. This study used panel data, with an observation period of 2019–2023 across 515 district and city governments in Indonesia. A total of 2,575 observations of the final sample data were obtained using a purposive sampling method, and the hypothesis testing used Partial Least Squares Structural Equation Modelling (PLS-SEM). The PLS-SEM analysis revealed that tax revenue and government expenditure move in the same direction as inclusive economic growth in district and city governments in Indonesia. However, revenue-sharing funds from natural resources have a negative impact on inclusive economic growth. Institutional quality successfully moderates the effect of tax revenue mobilisation and government expenditure on inclusive economic growth. However, it fails to moderate the relationship between revenue-sharing funds from natural resources and inclusive economic growth.
Keywords
Article Details
Copyright (c) 2025 Jurnal Akuntansi dan Auditing Indonesia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).