ISEIISEI

One moment, please...One moment, please...

The shadow economy encompasses economic activities that are not recorded in the Gross Domestic Product (GDP), resulting in reporting bias and diminished state revenue. This study estimates the size of the shadow economy across 34 Indonesian provinces from 2015 to 2021 using the Multiple Indicators and Multiple Causes (MIMIC) method. The results indicate that the estimated average shadow economy ranges from 4.73% to 42.64% of the provincial GRDP. Key influencing factors include tax burden, government regulations, regional autonomy, self-employed labor, and economic openness. These findings support policies aimed at reducing the shadow economy through tax efficiency, improved regulations, and enhanced welfare for micro, small, and medium enterprises (MSMEs) backed by local governments.

This study identifies tax burden, government regulations, regional autonomy, self-employment, and economic openness as significant factors influencing the shadow economy in Indonesian provinces between 2015 and 2021.The tax burden emerges as a primary driver of shadow economic activity, suggesting that government tax policies contribute to its expansion.Provinces with high tax burdens may incentivize informal economic activities.Therefore, adaptive local tax reforms and enhanced digitalization are crucial for mitigating the shadow economy and fostering formal economic growth.

Further research should investigate the specific mechanisms through which tax policies influence shadow economy participation at the provincial level, potentially employing micro-simulation models to assess the impact of different tax scenarios. Additionally, a comparative study examining the effectiveness of various regulatory simplification strategies across provinces could provide valuable insights for policy design. Finally, exploring the role of digital financial inclusion and access to credit for MSMEs in formalizing the economy, particularly in regions with high shadow economy prevalence, warrants further investigation. These studies should consider the unique socio-economic characteristics of each province to tailor effective interventions. A longitudinal study tracking the impact of government interventions aimed at reducing the shadow economy, coupled with detailed surveys of informal businesses, would provide a more nuanced understanding of the challenges and opportunities in formalizing the Indonesian economy. This research should also explore the relationship between corruption levels and the size of the shadow economy, as perceived corruption may incentivize businesses to operate informally to avoid scrutiny and potential extortion. Furthermore, investigating the impact of social safety nets and unemployment benefits on reducing the incentive to participate in the shadow economy could inform the design of more effective social policies.

  1. Inequality, Institutions, and Informality. inequality institutions informality https 9p7pzq3jbl execute... publications.iadb.org/en/inequality-institutions-and-informalityInequality Institutions and Informality inequality institutions informality https 9p7pzq3jbl execute publications iadb en inequality institutions and informality
  2. Estimating the shadow economy at the provincial level in Indonesia: A MIMIC model approach | Jurnal Ekonomi... doi.org/10.52813/jei.v14i1.561Estimating the shadow economy at the provincial level in Indonesia A MIMIC model approach Jurnal Ekonomi doi 10 52813 jei v14i1 561
Read online
File size682.24 KB
Pages15
DMCAReport

Related /

JURIS Pemanfaatan Potensi Geotermal WKP Tulehu Melalui Pembangkit Siklus Biner 2026More at 2026

POLNAMPOLNAM By applying the binary cycle, the power generated reaches 10 MW. Berdasarkan hasil penelitian, penerapan metode siklus biner dapat diaplikasikan pada PLTPBy applying the binary cycle, the power generated reaches 10 MW. Berdasarkan hasil penelitian, penerapan metode siklus biner dapat diaplikasikan pada PLTP

JURIS Legal Protection of Anesthesia Technicians for Anesthesia Procedures Without an Anesthesiologist in Hospitals 2026More at 2026

DINASTIRESDINASTIRES Secara keseluruhan, perlindungan hukum yang diberikan kepada teknisi anestesi sangat bergantung pada pemenuhan syarat-syarat dan batasan yang ditetapkanSecara keseluruhan, perlindungan hukum yang diberikan kepada teknisi anestesi sangat bergantung pada pemenuhan syarat-syarat dan batasan yang ditetapkan

JURIS Orchestration of Regional Government Organization Capacity to Strengthen Public Aspiration Oriented Development Planning 2026More at 2026

NEWINERANEWINERA Penelitian ini menggunakan metode deskriptif kualitatif dengan data diperoleh melalui wawancara mendalam, observasi partisipatif, tinjauan dokumen, danPenelitian ini menggunakan metode deskriptif kualitatif dengan data diperoleh melalui wawancara mendalam, observasi partisipatif, tinjauan dokumen, dan

JURIS Climate Gig Work Is Heat Wave Reducing Gig Riders Productivity in Greater Jakarta 2025More at 2025

KEMNAKERKEMNAKER Gig riders are more vulnerable to heat stress than non-gig informal workers due to their work conditions and limited protections. These findings underscoreGig riders are more vulnerable to heat stress than non-gig informal workers due to their work conditions and limited protections. These findings underscore

JURIS The Urgency of Establishing Compensation Standards and Minimum Wage Schemes for Interns from a Justice Perspective A Normative Study on Internship Providers 2025More at 2025

DINASTIRESDINASTIRES Berdasarkan temuan penelitian, kerangka regulasi yang mengatur program magang di Indonesia masih menghadapi kesenjangan signifikan akibat kurangnya sinkronisasiBerdasarkan temuan penelitian, kerangka regulasi yang mengatur program magang di Indonesia masih menghadapi kesenjangan signifikan akibat kurangnya sinkronisasi

JURIS Identifikasi Perubahan Tutupan Lahan Sebagai Dasar Strategi Pengelolaan Hutan Studi Kasus Kesatuan Pengelolaan Hutan Lindung Batutegi Lampung 2025More at 2025

UNIKUUNIKU Kesatuan Pengelolaan Hutan Lindung (KPHL) Batutegi merupakan satu dari banyak KPH di Indonesia yang melaksanakan program Perhutanan Sosial (PS) pemerintahKesatuan Pengelolaan Hutan Lindung (KPHL) Batutegi merupakan satu dari banyak KPH di Indonesia yang melaksanakan program Perhutanan Sosial (PS) pemerintah

JURIS The Influence of Numerical Ability and Abstract Thinking on Mathematical Problem Solving 2022More at 2022

IAIN PALOPOIAIN PALOPO Data yang diperoleh dianalisis dengan analisis statistika deskriptif dan statistik inferensial. Hasil penelitian menunjukkan terdapat pengaruh kemampuanData yang diperoleh dianalisis dengan analisis statistika deskriptif dan statistik inferensial. Hasil penelitian menunjukkan terdapat pengaruh kemampuan

JURIS Sistem Bagi Hasil Dalam Perjanjian Waralaba Franschise Ay Perspektif Hukum Islam 2017More at 2017

UADUAD Adapun dalam waralaba Syariah, sistem pembagian keuntungannya menggunakan sistem bagi hasil. Permasalahan yang akan dikaji dalam penelitian ini adalahAdapun dalam waralaba Syariah, sistem pembagian keuntungannya menggunakan sistem bagi hasil. Permasalahan yang akan dikaji dalam penelitian ini adalah

Useful /

JURIS Analisis Pendapatan Ekowisata Hutan Pinus Rombeng di Desa Boontolojong Kecamatan Uluere Kabupaten Bantaeng Income Analysis Of Rombeng Pinus Eco Tourism In Boontolojong Village Uluere District Banta 2025More at 2025

UNIKUUNIKU 11.357. 75/pertahun, Pedagang sebesar Rp. 83.562.500 /pertahun, dan Parkir sebesar Rp. 33.000.000/pertahun. Total pendapatan masyarakat sebesar Rp. 127.920.250/tahun11.357. 75/pertahun, Pedagang sebesar Rp. 83.562.500 /pertahun, dan Parkir sebesar Rp. 33.000.000/pertahun. Total pendapatan masyarakat sebesar Rp. 127.920.250/tahun

JURIS Karakteristik dan Produksi Walet Sarang Putih Collocalia fuciphaga dari Hasil Budidaya Walet di Desa Binanga Karaeng Kecamatan Lembang Kabupaten Pinrang 2025More at 2025

UNIKUUNIKU Penangkar kedua diperoleh bentuk sarang walet 62,5% seperti mangkok dibelah dua dan 37,5% berbentuk menyudut (segitiga), ukuran panjang sarang bentuk mangkokPenangkar kedua diperoleh bentuk sarang walet 62,5% seperti mangkok dibelah dua dan 37,5% berbentuk menyudut (segitiga), ukuran panjang sarang bentuk mangkok

JURIS Digital rupiah Are Indonesians ready 2025More at 2025

ISEIISEI Selain itu, masyarakat Indonesia siap menerima dan menggunakan CBDC (r-CBDC). Namun, implementasinya harus dilakukan secara bertahap karena faktor-faktorSelain itu, masyarakat Indonesia siap menerima dan menggunakan CBDC (r-CBDC). Namun, implementasinya harus dilakukan secara bertahap karena faktor-faktor

JURIS Investigating inflation dynamics in Indonesia Identifying the inflation spillover for enhancing regional inflation control 2025More at 2025

ISEIISEI Kalimantan Selatan, Jakarta, dan Jawa Timur adalah tiga daerah teratas yang mengalami dampak signifikan dari tekanan inflasi yang berasal dari luar. AnalisisKalimantan Selatan, Jakarta, dan Jawa Timur adalah tiga daerah teratas yang mengalami dampak signifikan dari tekanan inflasi yang berasal dari luar. Analisis

ads-block-test