Main Article Content


This study aims to analyze the effect of Foreign Direct Investment (FDI), and share of agriculture on Tax Revenue in ASEAN countries with Regulatory Quality as the moderating variable. The research method used is descriptive quantitative with panel data regression analysis and the econometric model is estimated by Panel Corrected Standard Errors (PCSE). The result indicates that FDI, share of agriculture, regulatory-quality-moderated FDI and share of agriculture simultaneously have a significant effect on Tax Revenue. Partially, the result shows that FDI has a positive and significant effect on Tax Revenue. Regulatory Quality and Share of Agriculture have no effect on Tax Revenue. Furthermore, Regulatory Quality weakens the positive relationship of FDI and Tax Revenue, whereas Regulatory Quality strengthens the negative relationship between Share of Agriculture and Tax Revenue. Based on the generated results, there will be a necessity for government to create a comprehensive economic and fiscal policy to increase tax revenue and to strengthen the tax base in the ASEAN countries.


ASEAN Foreign Direct Investment Regulatory Quality Share of Agriculture Tax Revenue

Article Details

How to Cite
Anwar, F. M., & Wijaya, S. (2023). Tax Revenue, FDI, and Agricultural Sector: A Dynamic Interaction with Regulatory Quality as the Moderation. Ilomata International Journal of Tax and Accounting, 4(3), 524-545.


  1. Ade, M., Rossouw, J., & Gwatidzo, T. (2018). Determinants of tax revenue performance in the Southern African Development Community (SADC). Economic Research Southern Africa, Working Paper, 762.
  2. Agbeyegbe, T. D., Stotsky, J., & WoldeMariam, A. (2006). Trade liberalization, exchange rate changes, and tax revenue in Sub-Saharan Africa. Journal of Asian Economics, 17(2), 261–284.
  3. Ahmad, H. K., Ahmad, S., Mushtaq, M., & Nadeen, M. (2016). Socio economic determinants of tax revenue in Pakistan: An empirical analysis. Journal of Applied Environment and Biological Sciences, 6, 32–42.
  4. Ahuja, H. L. (2012). Modern economics analytical study of microeconomics, macroeconomics, money and bank-ing. . Public Finance, International Economics and Economics of Growth and Development.
  5. Alburo, S. J. (2022). Tax incentives for food providers. Https://Www.Grantthornton.Com.Ph/Insights/Articles-and-Updates1/Lets-Talk-Tax/Tax-Incentives-for-Food-Providers/.
  6. Al-Sadig, A. (2013). The effects of foreign direct investment on private domestic investment: evidence from developing countries. Empirical Economics, 44(3), 1267–1275.
  7. Amelia, D., & Sukadana, I. W. (2019). Analisis korelasi kualitas pemerintahan dan foreign direct investment di lima negara asean studi tahun 2008-2017. Ekonomi Pembangunan, 8(8), 1915–1946.
  8. Amoh, J. K., & Adom, P. K. (2017). The determinants of tax revenue growth of an emerging economy - the case of Ghana. International Journal of Economics and Accounting, 8(3/4), 337.
  9. Andiko, M. C., Asnawi, M., & Pangayow, B. J. (2018). Pengaruh Pengetahuan Perpajakan, Ketegasan Sanksi Pajak, Tax Amnesty, Lingkungan Wajib Pajak Terhadap Kepatuhan Wajib Pajak. Jurnal Akuntansi Dan Keuangan Daerah, 13(2), 26–40.
  10. Andrejovská, A., & Puliková, V. (2018). Tax Revenues in the Context of Economic Determinants. Montenegrin Journal of Economics, 14(1), 133–141.
  11. Arikunto, S. (2006). Prosedur penelitian tindakan kelas: Vol. 136 (2). Bumi Aksara.
  12. ASEAN. (2021). ASEAN Development Outlook: Inclusive and Sustainable Development.
  13. Asmah, E. E., Kwaw Andoh, F., & Titriku, E. (2020). Trade misinvoicing effects on tax revenue in sub‐Saharan Africa: The role of tax holidays and regulatory quality. Annals of Public and Cooperative Economics, 91(4), 649–672.
  14. Ayenew, W. (2016). Determinants of Tax Revenue in Ethiopia (Johansen Co-Integration Approach). International Journal of Business, Economics and Management, 3(6), 69–84.
  15. Becker, G. S. (1983). A Theory of Competition Among Pressure Groups for Political Influence. The Quarterly Journal of Economics, 98(3), 371.
  16. Bénassy-Quéré, A., Coupet, M., & Mayer, T. (2007). Institutional Determinants of Foreign Direct Investment. The World Economy, 30(5), 764–782.
  17. BESUSPARIENĖ, E. (2018, February 15). SINGULARITY OF SUSTAINABLE TAXATION IN AGRICULTURE. Proccedings of International Scientific Conference “RURAL DEVELOPMENT 2017.”
  19. Camara, A. (2022). The Effect of Foreign Direct Investment on Tax Revenue. Comparative Economic Studies, 1–23.
  20. Chang, J. J., Chen, B., & Hsu, M. (2006). Agricultural Productivity and Economic Growth: Role of Tax Revenues and Infrastructures. Southern Economic Journal, 72(4), 891–914.
  21. Chaudhry, I. S., & Munir, F. (2010). Determinants of low tax revenue in Pakistan. Pakistan Journal of Social Sciences, 30(2), 439–452.
  22. David A. (2000). Resource mobilization for Economic development: The role of internal tax administration. 1–31.
  23. DRĂGOI, D. (2019). HARROD-DOMAR ECONOMIC GROWTH MODEL IN CLASSICAL AND NEOCLASSICAL THEORY NAME AND SURNAME. Annals of’Constantin Brancusi’University of Targu-Jiu Economy Series, 6.
  24. Du, N. H., & Tai, N. T. (2020, July 3). Tax Incentives for Vietnam’s Agriculture Sector. BLOOMBERG: Https://
  25. Dunning, J. H. (2001). The Eclectic (OLI) Paradigm of International Production: Past, Present and Future. International Journal of the Economics of Business, 8(2), 173–190.
  26. Dwivedi, P., & Badge, J. (2013). ). Impact of FDI inflow on service sector in India: An empirical analysis. International Journal of Management Research and Business Strategy, 2(3), 120–129.
  27. EZE, A. A., NNAJI, M., & C. NKALU, N. (2019). Impact of Foreign Direct Investment on Manufacturing Sector Output Growth in Nigeria. International Journal of Applied Economics, Finance and Accounting, 5(2), 55–64.
  28. Gaalya, M. S., Edward, B., & Eria, H. (2017). Trade Openness and Tax Revenue Performance in East African Countries. Modern Economy, 08(05), 690–711.
  29. Gaspareniene, L., Kliestik, T., Sivickiene, R., Remeikiene, R., & Endrijaitis, M. (2022). Impact of Foreign Direct Investment on Tax Revenue: The Case of the European Union. Journal of Competitiveness, 14(1), 43–60.
  30. Ghozali, I. (2011). Aplikasi Analisis Multivariate Dengan Program SPSS. Badan Penerbit Universitas Diponegoro.
  31. Girdžiūtė, L., & & Slavickienė, A. (2011). Žemės ūkio rizikos ir jų vertinimo modeliai. Vadybos Mokslas Ir Studijos-Kaimo Verslų Ir Jų Infrastruktūros Plėtrai, 3, 66–77.
  32. Guasch, J. L., & Hahn, R. W. (1999). The Costs and Benefits of Regulation: Implications for Developing Countries. The World Bank Research Observer, 14(1), 137–158.
  33. Gujarati, D. (2003). Ekonometri Dasar (Terjemahan: Sumarno Zain, Ed.). Erlangga.
  34. Gujarati, D., Porter, D. C., & Gunasekar, S. (2012). Basic Econometrics. Tata McGrawhill.
  35. Jalilian, H., Kirkpatrick, C., & Parker, D. (2007). The Impact of Regulation on Economic Growth in Developing Countries: A Cross-Country Analysis. World Development, 35(1), 87–103.
  36. Jean Vasile, A., Subic, J., Grubor, A., & Privitera, D. (2019). Handbook of Research on Agricultural Policy, Rural Development, and Entrepreneurship in Contemporary Economies. IGI Global.
  37. Jeza, M. T., Hassen, A. A., & Ramakrishna, G. (2016). The impact of foreign direct investment (FDI) flows on aggregate and disaggregate tax revenues in Ethiopia: A bounds test with a structural break. Asian-African Journal of Economics and Econometrics, 16(2), 171–201.
  38. Jhingan, M. L. (2004). Money, banking, international trade and public finance. Vrinda.
  39. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). Response to ‘What do the worldwide governance indicators measure? The European Journal of Development Research, 22, 55–58.
  40. Kitessa, D. T., & Jewaria, T. (2018). Determinants of tax revenue in East African countries: An application of multivariate panel data cointegration analysis. Journal of Economics and International Finance, 10(11), 134–155.
  41. Kusi, N. K. (1998). Tax reform and revenue productivity in Ghana. Nairobi, Kenya: The African Economic Research Consortium.
  42. Mahmood, H., & Chaudhary, A. R. (2013). Impact of FDI on tax revenue in Pakistan. Pakistan Journal of Commerce and Social Sciences (PJCSS), 7(1), 59–69.
  43. Matsuyama, K. (1992). Agricultural productivity, comparative advantage, and economic growth. Journal of Economic Theory, 58(2), 317–334.
  44. Mohammed MYLES, G. D. (2000). Taxation and Economic Growth. Fiscal Studies, 21(1), 141–168.
  45. Nath, S. D., Alam, A. F., & Biswas, M. R. (2022). The impact of foreign direct investment inflows on the tax revenues in bangladesh. Indian Journal of Commerce and Management Studies, 13(02), 16–20.
  46. Ngotho, J., & Kerongo, F. (2014). Determinants of revenue collection in developing countries: Kenya’s tax collection perspective. Journal of Management and Business Administration, 1(1).
  47. Nguyen, H. T., & Darsono, S. N. A. C. (2022). The Impacts of Tax Revenue and Investment on the Economic Growth in Southeast Asian Countries. Journal of Accounting and Investment, 23(1), 128–146.
  48. OECD. (2008). Tax Effects on Foreign Direct Investment – Recent Evidence and Policy Analysis. OECD Tax Policy Study No.17.
  49. OECD. (2023). Tax Revenue. Https://Data.Oecd.Org/Tax/Tax-Revenue.Htm#:~:Text=Total%20tax%20revenue%20as%20a,Government%20controls%20the%20economy’s%20resources.
  50. Ofoegbu, G. N., Akwu, D. O., & O, O. (2016). Empirical Analysis of Effect of Tax Revenue on Economic Development of Nigeria. International Journal of Asian Social Science, 6(10), 604–613.
  51. Ojong, C. M., Anthony, O., & Arikpo, O. F. (2016). The impact of tax revenue on economic growth: Evidence from Nigeria. IOSR Journal of Economics and Finance, 7(1), 32–38.
  52. Onakoya, A. B., Afintinni, O. I., & Ogundajo, G. O. (2017). Taxation revenue and economic growth in Africa. Journal of Accounting and Taxation, 9(2), 11–22.
  53. Pejabat Pengelola Informasi dan Dokumentasi (PPID) Kementerian Keuangan. (2021). Pemerintah Perpanjang Insentif Pajak. Https://E-Ppid.Kemenkeu.Go.Id/in/Post/Pemerintah-Perpanjang-Insentif-Pajak.
  54. PER-04/PJ/2020 tentang Petunjuk Teknis Pelaksanaan Administrasi Nomor Pokok Wajib Pajak, Sertifikat Elektronik, Dan Pengukuhan Pengusaha Kena Pajak. (n.d.).
  55. Peraturan Pemerintah Nomor 78 Tahun 2019 tentang Fasilitas Pajak Penghasilan untuk Penanaman Modal di Bidang-Bidang Usaha Tertentu.
  56. Pfister, M. (2009). Taxation for investment and development: An overview of policy challenges in Africa. Ministerial Meeting and Expert Roundtable of the NEPAD – OECD Africa Investment Initiative.
  57. Phuong, L. N. (2015). The impact of institutional quality on tax revenue in developing countries. Asian Journal of Empirical Research, 5(10), 181–195.
  58. Piancastelli, M. (2001). Measuring the tax effort of developed and developing countries: Cross country panel data analysis-1985/95.
  59. PMK Nomor 59 Tahun 2022 tentang Perubahan atas PMK Nomor 231/PMK.03/2019 tentang Tata Cara Pendaftaran dan Penghapusan NPWP, Pengukuhan dan Pencabutan Pengukuhan PKP, serta Pemotongan dan/atau Penyetoran, dan Pelaporan Pajak bagi Instansi Pemerintah. (n.d.).
  60. Posner, R. (1974). Theories of Economic Regulation.
  61. Pratomo, A. W. (2020). THE EFFECT OF FOREIGN DIRECT INVESTMENT ON TAX REVENUE IN DEVELOPING COUNTRIES. Jurnal BPPK : Badan Pendidikan Dan Pelatihan Keuangan, 13(1), 83–95.
  62. Profeta, P., & Scabrosetti, S. (2010). he political economy of taxation: Lessons from developing countries. Edward Elgar Publishing.
  63. Rahayu, N. (20107). Pengaruh pengetahuan perpajakan, ketegasan sanksi pajak, dan Tax amnesty terhadap kepatuhan wajib pajak. Akuntansi Dewantara, 1(1), 15–30.
  64. Saad, N. (2014). Tax Knowledge, Tax Complexity and Tax Compliance: Taxpayers’ View. Procedia - Social and Behavioral Sciences, 109, 1069–1075.
  65. Saibu, O. M., & Olatunbosun, S. O. (2013). Macroeconomic determinants of tax revenue in Nigeria (1970-2011).
  66. Sarwedi, S. (2002). ). Investasi Asing Langsung Di Indonesia Dan Faktor Yang Mempengaruhinya. Jurnal Akuntansi Dan Keuangan, 4(1), 17–35.
  67. Saunders, M., Lewis, P., & Thornhill, A. (2016). Research methods for business students (Seventh Edition). Pearson Education Limited.
  68. Schneider, F. (2005). Shadow economies around the world: what do we really know? European Journal of Political Economy, 21(3), 598–642.
  69. Schneider, F., Buehn, A., & Montenegro, C. E. (2010). New Estimates for the Shadow Economies all over the World. International Economic Journal, 24(4), 443–461.
  70. Schneider, F. G., & Klinglmair, R. (2004). Shadow Economies Around the World: What Do We Know? SSRN Electronic Journal.
  71. Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65.
  72. Stigler, G. J. (1971). The theory of economic regulation. The Bell Journal of Economics and Management Science, 3–21.
  73. Sujarweni, W. (2015). SPSS Untuk Penelitian. Pustaka Baru Press.
  74. Syadullah, M. (2015). Governance and Tax Revenue in Asean Countries. Journal of Social and Development Sciences, 6(2), 76–88.
  75. Teorell, J., & Rothstein, B. (2008). What Is Quality of Government: A Theory of Impartial Institutions. GOVERNANCE: An International Journal of Policy, Adminstration and Institutions, 21(2), 165–190.
  76. Undang-undang 19-2021 tentang Pembebasan dari Pajak Penghasilan bagi Usaha Tani dan Nelayan Terakreditasi (Accredited Farmers and Fisherfolk Enterprises) yang terdaftar di Barangay Micro-Business Enterprises (BMBEs) .
  77. United Nations Conference on Trade and Development (UNCTAD). (2019). Global foreign direct investment slides for third consecutive year.
  78. Wahyuni, A. (2011). Tax Evasion: Dampak dari Self Assessment System. Jurnal Ilmiah Akuntansi Dan Humanika, 1(1).
  79. Weber Waller, S. (2006). Book Review: Economics of Regulation and Antitrust , W. Kip Viscusi, Joseph E. Harrington, Jr., and John M. Vernon (MIT Press, Cambridge, Massachusetts & London, England, 4th Edn, 2005). World Competition, 29(Issue 3), 504–504.
  80. Wicaksono, R. M. T. A. D. (2021). Analisis Perbandingan Hukum Penanaman Modal Asing Antara Indonesia Dengan Vietnam (Tinjauan Dari Undang-Undang No. 25 Tahun 2007 Tentang Penanaman Modal dan Law No. 67/2014/QH13 On Investment). . Jurnal Al Azhar Indonesia Seri Ilmu Sosial, 2(1), 7–23.
  81. World Bank. (2023). Tax Revenue (% of GDP). Https://Data.Worldbank.Org/Indicator/GC.TAX.TOTL.GD.ZS.
  82. Worlu, C. N., & Nkoro, E. (2012). Tax revenue and economic development in Nigeria: A macroeconometric approach. Academic Journal of Interdisciplinary Studies, 1(2), 211–223.
  83. Yaru, M. A., & Raji, A. S. (2022). Corruption, governance and tax revenue performance in Sub-Saharan Africa. African Journal of Economic Review, 10(1), 234–253.
  84. Zhang, K. H., & Song, S. (2001). Promoting exports: the role of inward FDI in China. China Economic Review, 11(4), 385–396.