The Tax Revenue from Agriculture and Manufacturing Sectors in Lower Middle-Income Countries with Exchange Rate as a Moderating Variable

Middle-income trap triggers the middle-income countries to boost their economic growth. As tax revenue has causal relationship with growth, it is essential conduct a study on how improve revenue. Considering potential of agriculture and manufacturing sectors in lower countries, particularly East Asia Pacific Regions one which Indonesia, this aims determine effects both respective regions. This uses exchange rate as moderating variable foreign direct investment (FDI) control variable. The utilization two variables becomes novelty since researches that have never been conducted. In addition, no references former studies concerning found. research conducted from 2002 2019 by using panel data multiple linear regression analysis method. By fixed effect model ridge model, indicated before moderation carried out, negative manufacture positive However, after are moderated rate, interaction revenue, while implies optimize country's apart focusing optimizing or manufacture, condition needs be considered.