Economic Growth In The Stability Of The Nation With Taxes And The Important Role Of Foreign Direct Investment

Abstract

This study investigates economic growth, taxes and foreign direct investment. This study investigates data from the 2000 to 2020 starting point to generate “autoregressive vectors” that can be used to determine relationships between variables. This model is used to analyze foreign direct investment, economic growth and taxes in Indonesia using secondary data from the World Bank. We find that The role of taxes in improving economic stability in Indonesia is very important and has a fairly high interrelationship, It is also stated that Economic Growth has an important relationship with Taxes, when Economic Growth increases, Taxes will also increase, not only Taxes, Foreign Direct Investment also increases when Economic Growth grows, therefore Indonesia needs to pay attention to economic growth because economic growth itself has many important roles, including increasing FDI or Foreign Direct Investment and Taxes which are useful for economic stability.