THE INFLUENCE OF INDUSTRIAL LOCATION AND FISCAL INCENTIVES ON EXPORT VALUE

• Main Author: Arafiq, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53662
• Institution: Institut Teknologi Bandung

There has been quite a lot of research conducted on the relationship between fiscal incentives and export value, but no one has yet measured and / or compared the effect of the relationship if the companies receiving fiscal incentives are inside industrial estates and outside industrial estates. This study aims to measure the effect of industrial location and fiscal incentives on export value. This research is a data-driven analysis that collects industrial activity data from 106 manufacturing industrial companies that have Ease of Import for Export Purpose (KITE) in Indonesia. Observations were made from January 2015 to December 2019. The analysis was carried out using a quantitative approach through 2 analytical tools, namely ratio analysis and regression analysis with several regression model, namely: static regression model, fixed effect model, fixed effect within IV model, dan generalized methods of moments. Based on the analysis, it was found that: 1) there is a difference in the ratio of the use of fiscal incentives in terms of industrial location; 2) there are quite diverse and significant variations in the ratio of the use of fiscal incentives in terms of the type of industry; 3) fiscal incentives have a positive and significant impact on export value; 4) industrial location is also have a positive and significant effect on export value; and 5) the effect of fiscal incentives on export value is lower inside industrial estates than outside industrial estates.