Shakespeares Hamlet - Hamlet and the Ghost Essay -- GCSE English Lite

Hamlet and the Ghost      Ã‚  Ã‚   This essay will analyze a very important, non-human character in Shakespeare’s tragedy, Hamlet. This is, of course, a reference to the supernatural creature, or Ghost.    A.C. Bradley in Shakespearean Tragedy discusses the quandary into which the Ghost put the protagonist:    What, it may be asked, was hamlet to do when the Ghost had left him with its commission of vengeance? The King was surrounded not merely by courtiers but by a Swiss bodyguard: how was Hamlet to get at him? Was he then to accuse him publicly of the murder? If he did, what would happen? How would he prove the charge? All that he had to offer in proof was – a ghost story! Others, to be sure, had seen the Ghost, but no one else had heard its revelations. (97)       Frank Kermode in â€Å"Hamlet† fits the Ghost into the local and national scene:    But meanwhile the ghost – â€Å"this thing† – has appeared. (Horatio as skeptic raises questions as to its status which could have been avoided.) There has been speculation as to its purpose, but one thing seems sure: it has to do with the state of the nation – it   â€Å"bodes some strange eruption to our state† – and with the armaments drive now in progress under the threat from Norway. That it genuinely has to do with the state of the nation – its spiritual rather than its merely political state – we shall learn; and to give us a â€Å"musical’ sense that this is so, there is the unexpected speech about Christmas. (1138)    The Ghost means more than a commentary on the spiritual and political state of the nation. Gunnar Boklund’s   â€Å"Judgment in Hamlet† introduces the Ghost in terms of the dilemma of the protagonist:      It is a commonplace to refer to Hamlet’s â€Å"... ...Diego: Greenhaven Press, 1999. Rpt. from The Masks of Hamlet. Newark, NJ: University of Delaware Press, 1992.    Shakespeare, William. The Tragedy of Hamlet, Prince of Denmark. Massachusetts Institute of Technology. 1995. http://www.chemicool.com/Shakespeare/hamlet/full.html    Ward & Trent, et al. The Cambridge History of English and American Literature. New York: G.P. Putnam’s Sons, 1907–21; New York: Bartleby.com, 2000 http://www.bartleby.com/215/0816.html    West, Rebecca. â€Å"A Court and World Infected by the Disease of Corruption.† Readings on Hamlet. Ed. Don Nardo. San Diego: Greenhaven Press, 1999. Rpt. from The Court and the Castle. New Haven, CT: Yale University Press, 1957.    Wilkie, Brian and James Hurt. â€Å"Shakespeare.† Literature of the Western World. Ed. Brian Wilkie and James Hurt. New York: Macmillan Publishing Co., 1992.   

Existing Good or Service Business Proposal Essay

The Thomas Money Service, Inc. is a consumer finance company that has been granting loans and financing since 1940. Within the first five years the company expanded its business when it began â€Å"issuing business loans, business acquisition financing, and commercial real estate loans† (University of Phoenix, 2011, p. 1). By 1946 the company expanded to include equipment financing by creating a subsidiary named Future Growth Inc. (FGI). Due to increased demand in forestry and construction equipment in 1951 FGI purchased a manufacturing company so that the company was able to offer financing as well as their own brand of construction equipment. Over the past 67 years, FGI has held a monopoly on financing and manufacturing construction equipment and has seen only increased profits year after year. FGI has also never had to lay off any of its employees. â€Å"This track record has allowed their stock to grow from $5.00 to $85.60 with stock splits from 1975 to 1998. FGI has never issued bonds, and the present stock value is $35† (University of Phoenix, 2011, p. 1). Unfortunately, with the current economic downturns, natural disasters, and a decline in new-home sales, profits for FGI began to decline by 30% from the previous year. Due to the decline in production, the company was forced to layoff a third of their employees. Even with the current drop in new-home sales, there is still the opportunity for demand to increase as the economy becomes healthy again. Below the author will discuss how to increase revenue. Increase revenue FGI has many opportunities to increase revenue. Increasing revenue is not only dependent on the sales price of the product but also on what the companies expenses include. The company will need to re-evaluate the way it spends money and determine how to reduce outgoing costs. The first step FGI should take is to review its vendor list and communicate with the vendor to  determine the best way to reduce costs while saving the vendor money as well. FGI could request that all parts and supplies be purchased in bulk to cut down on freight charges as well as reach out to other businesses in the area to purchase supplies from the same vendor together. They would share the cost of freight, which would reduce the expense for both companies. Advertising is another expense that FGI needs to focus on. Currently FGI has cut back on its advertising efforts and has decided to only advertise during sporting events. This might not be a productive advertising strategy. It would be more lucrative to advertise in several venues such as direct mail, newspapers, and telephone books. This strategy will get the company name and services to a broader area of customers. Another expense is employee hours, schedules, and benefits that could use an overhaul. Currently FGI was forced to layoff a third of its workforce. The company needs to determine the best way to keep its employees while still saving money for the company. Department heads will need to review and re-evaluate employee schedules and hours to ensure that they are using the employee hours effectively. By re-scheduling and reducing employee hours, FGI will be able to save even more revenue. Benefits are also an expense that is offered by the company, but the company is not required to offer them to its employees. FGI should review and determine if it can continue to offer all of the benefits it currently does. If necessary, FGI could reduce 401k matching, reduce or stop employee bonuses and parties, and finally re-negotiate with insurance companies to find a more cost effective insurance package for the employees. Finally, the most effective way to ensure an increase in revenue is to cut t he sales price of the equipment. The chart below shows that the lower the price, the higher the demand. If FGI were to decrease its prices they would increase sales. Communicating with vendors, upping advertising, re-structuring employee hours and benefits, and cutting prices are all successful ways to increase revenue. Another aspect of increasing revenue that FGI needs to  consider is the spending power of its customers. The economy of the United States is currently on the down turn again, heading back into a recession. The credit market conditions are not very strong; the current unemployment rate is unchanged at 9.1% according to the U.S. Bureau of Labor Statistics. The fact that the unemployment rate has had no change means that the economy has not changed. There are no new jobs, which affect the construction industry. People cannot afford to build homes and they cannot apply for loans because their credit history is not strong enough. There is a silver lining for construction companies and equipment companies such as FGI. In 2009, the government created the 2009 Stimulus Package, which included â€Å"$131 billion allocated for construction-related spending† (The McGraw-Hill Companies, Inc., 2011, para 1). This stimulus allows for construction companies to bid for upcoming transportation construction jobs. Construction companies will need to upgrade their equipment to newer more efficient equipment that can handle the new workload and conditions. FGI will need to take advantage of the influx in construction equipment purchases by advertising and offering discounts and rebates to all new and current customers. Maximize Profit The concept of marginal cost and marginal revenue is used to determine how much it will cost to produce one more piece of equipment. â€Å"Companies typically look to reach a production equilibrium where marginal cost and marginal revenue are equal. At this point, the company will maximize its profit† (Vitez, 2003-2011). If an imbalance were to occur on either marginal costs or marginal revenue there will be inefficiencies with production. There is a possibility that it could cost the company more to produce the extra piece of equipment than it would profit from. According to Huter â€Å"The quantity that maximizes profit is where marginal profit shifts from positive to negative† (1999-2011). To determine the profit-maximizing quantity it is necessary to know the price, variable costs, marginal revenue, and quantity ordered. Looking at the chart above it is clear that the company is making money off of the maximum of 12 orders. If the order demand were to go from 12 to 13, there is the possibility that it would cost the company more to produce that many than they are able to charge for all 13. With that in mind, the  profit-maximizing quantity would be 13. Suggested Mix of Pricing and Non-Pricing Strategies FGI is no longer the only equipment manufacturing company for customers to choose from. In order for FGI to stay competitive, the company must include a mix of pricing and non-pricing strategies. Non-pricing strategies would include advertising the company as well as any discounts, financing, and warranties the company has to offer. Pricing strategies could include low-interest financing, longer payment terms, warranties, and product bundling. Product bundling could simply state that if a customer not only orders the equipment through FGI but also finances the purchase than they will receive a discount on the total price. According to the Wall Street Journal, â€Å"the Labor Department’s snapshot of the August jobs landscape, cuts in the public sector entirely offset the private sector’s gain of 17,000 positions. Figures from earlier months were lowered, due largely to deeper cuts by government. The unemployment rate remained at 9.1% but is likely to move higher in coming months amid the lackluster pace of job creation†Ã¢â‚¬â„¢ (Reddy, 2011, para 4). Due to the possible economic downturn, FGI must consider a radical change in policy to stay competitive and on top of the market for construction manufacturing equipment. This radical change would be to offer customers the opportunity to rent or lease the construction equipment instead of purchasing it out right. Leasing construction equipment will allow construction companies to save money and will allow FGI to earn income and stand out among its competition. Create or Increase Barriers to Entry It can be difficult to create or increase barriers to entry when there is already competition in place. A few things that FGI could do to increase barriers to entry is to offer customers something that is totally different from the competition. Making the customers want to only purchase from FGI. Those differences would include the ability of the customer to rent the construction equipment for the duration of their contract and increase customer service. Increasing customer service would include offering the customers more options to contact FGI. FGI will need to utilize technology  such as the Internet, Websites, email communication, and QR codes, which allows customers to access company information and discounts. Increase Product Differentiation Product differentiation includes pricing and non-pricing strategies as well as increasing barriers to entry. FGI will need to make their construction equipment stand out from its competitors. In order to stand out, FGI will need to make changes to how it advertises its product, increase offers customers who purchase the equipment, and make the customers experience with FGI unique. Customers want to be excited about spending money, FGI should make their shopping experience exciting and rewarding. Customers who are happy about their purchases will spread the word to other potential customers who will then decide to purchase from FGI over other construction equipment companies. Other Ways to Minimize Costs A few ways to minimize costs for the product includes reducing the amount of employees, which FGI recently did. One way to minimize costs is for FGI to lease their manufacturing centers and financial offices instead of purchasing the buildings. Leasing will reduce costs to FGI because the owner of the buildings will need to pay for the upkeep and maintenance of the building and grounds. Reducing spending on supplies and manufacturing equipment is another way to minimize costs. The issue with reducing spending on supplies and is that the supplies could potentially be inferior products which would then make the products that FGI sells inferior. FGI will need to determine if the quality of their product is worth risking so that the company can reduce the cost of producing the equipment. International Trade International trade is beneficial to both the United States and foreign countries because it is the exchange of goods between both countries. â€Å"Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries† (Heakal, 2003, para 4). International trade can affect and is affected by each nations political issues. A current example is the Greek economic bail out. The Greek economy is currently in need of another debt bailout to hopefully  turn its economy around. The affect that the European bailout of Greece could have on the United States is that Europe will have less money to spend on American goods, which will then cause trade to decrease. â€Å"If a full default occurred, other troubled countries, notably Spain and Portugal, could also follow suit, leading to a wave of defaults that would severely affect the European zone and could send shockwaves all the way to Wall Street† (Katrandjian, 2011, para 13). As the Global Economy stands now, international trade has not been affected significantly. There is the possibility of international trade being affected if the European economy doesn’t stabilize. With that in mind FGI must consider how the international economy will affect the overhaul of FGI’s current marketing structure. FGI will need to make its products more lucrative for foreign companies to purchase. FGI would need to create a special package offer to foreign companies that includes special incentives such as discounts, extended warranties, and shorter lead times. Conclusion FGI has been a successful company since 1940. With the recent economic hardships and additional competition, FGI has determined that they need to re-evaluate their current marketing and product strategies. To increase profit and market value, FGI will need to revamp their spending, marketing, employee hours and benefits, and reduce the cost of their product. Another aspect of business that FGI needs to focus on is the marginal costs and marginal revenue to maximize profits so that they are not producing too much product that will end up costing them more than it is sold for. FGI has the opportunity to re-strategies their pricing and incentives to draw in more customers as well as increase blocking more companies from entering the construction equipment manufacturing industry. With the current credit markets being at an all time low, FGI will need to adjust their production and extended forecast to meet the potential decrease in sales. The 2009 Stimulus Package offers hope to FGI that sales will increase due to the government projected construction improvements on all Freeways and Highways throughout the country. Reference: Katrandjian, O., (2011) Greek Debt Bailout Could Affect the U.S. Economy. Retrieved September 5, 2011 from http://abcnews.go.com/Business/greek-debt-bailout-affect-us-economy/story?id=13879426 Heakal, R., (2003) What is International Trade? Retrieved September 5, 2011 from http://www.investopedia.com/articles/03/112503.asp#ixzz1X6dCaTuv Huter, S., (1999-2011) How to Calculate the Profit Maximizing Quantity. Retrieved August 20, 2011 from http://www.ehow.com/how_6713701_calculate-profit_maximizing-quantity.html Reddy, S., (2011) Job Growth Grinds to a Halt. Retrieved September 4, 2011 from http://online.wsj.com/article/SB10001424053111904583204576546220157206548.html The McGraw-Hill Companies (2011) Construction Stimulus Special Section. Retrieved September 4, 2011 from http://construction.com/stimulus/market_sectors/ University of Phoenix, (2011). Thomas Money Service Inc. Scenario [Computer Software]. Retrieved from University of Phoenix, Simulation, ECO561 website. U.S. Bureau of Labor Statistics (2011) Employment Situation Summary. Retrieved September 4 , 2011 from http://www.bls.gov/news.release/empsit.nr0.htm Vitez, O., (2003-2011) What Is the Relationship Between Marginal Cost and Marginal Revenue? Retrieved August 21, 2011 from http://www.wisegeek.com/what-is-the-relationship-between-marginal-cost-and-marginal-revenue.htm

The Factors Determinant Tax Revenue In Malaysia - Free Essay Example

Sample details Pages: 18 Words: 5434 Downloads: 6 Date added: 2017/06/26 Category Statistics Essay Did you like this example? INTRODUCTION Malaysia is a federation of 13 States and the Federal Territories of Kuala Lumpur and Labuan. The Federal Constitution contains special provisions regarding sources of revenue that are assigned to the Federal and the State governments. Those that are assigned to the State governments include revenue fom land, forest, mining, entertainment, water supply, bank interests, returns from investments, fines including forfeitures (other than imposed by Federal Courts) and fees for licences and permits (but not licences relating to motor vehicles and registration of businesses). Don’t waste time! Our writers will create an original "The Factors Determinant Tax Revenue In Malaysia" essay for you Create order All other revenues, not specifically assigned to the states, are Federal Government revenues. Taxation become crucial economic tools to govern economics for any country, especially to developing countries like Malaysia. With the rapid trend toward globalization and internationalization, the pattern of tax revenues and economic growth accross countries has become a significant concern to economists. Recently, Malaysia has also performed well and shows the similar growth pattern in economy. Therefore, fund collected from taxation used by the government to provide facilities for its population and for the development of the nation. Other than that income tax is one of the surest way to make sure the Government fund is available for spending. Inland Revenue Board (IRB) has play their main role as an agent of Malaysian Government and to provide services in administering, assessing, collecting, and enforcing payment of income tax and other revenue as may be agreed between Government andd the Board. For many years, the Inland Revenue Board (IRB) has presumed that its activities promote better tax collection starting from Official Assessment System (OAS) until Self Assessment System (SAS). Malaysia Federal Government revenues are broadly classified as tax revenues, non-tax revenues and non-revenue receipts. Tax revenues include both Direct and Indirect Taxes. Direct taxes are collected by the Inland Revenue Board (IRB) and includes taxes such as income tax on individuals and corporations, petroleum income tax, stamp duty and real property gains tax. While for indirect taxes the responsibility of collection is taken by the Royal Customs and Excise Department. Indirect taxes include import duties, export duties, excise duties, sales tax, service tax and last but not least; goods and services tax (GST) that replace sales tax and service tax. Non-tax revenues of Malaysian Government consists of fees for issue of licences and permits, fees for specific services, proceeds from sale of government assets, rental of government property, bank interests, returns from Government investments (including gains from sales of investments) fines and forfeitures. The non-revenue receipts consist mainly of repayments and reimbursements such as refunds of overpayments in previous years and repayment of loans from the Federal Governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s Consolidated Fund (Revenue Account) received from other Federal Government Agencies and State Governments. The trend of tax collection in Malaysia is inconsistent, changing upward and downward depending upon economic conditions. However, over a 30 period, most years show an increasing incremental in total collection. The exceptions are when there is an abnormal economic condition such as financial crisis, war or increase in world oil prices. During the early stages of its development which is in year 1960, Malaysia similar with most developing countries relied heavily on indirect taxes accounted for 76.7% (Kasipillai, 2006). However as the economy developed and with the tax reform less reliance was placed on indirect tax which starting from year 1999 the major contribution to government revenue is come from direct tax (69%). In 2008 the collection of direct tax represents 52% of the Government total revenue (Economic Planning Unit, Ministry of Finance and Bank Negara Malaysia). It is believed that the encouraging growth in Gross Gomestic Product (GDP) in 2009 stood at 23% contribute positively to the national revenue collection (9MP). After brief introduction the remainder of this paper is structured as follow. Chapter 2 provide some sort of literature review regarding all the variables included in this research. Chapter 3 consist of research methodology and design, data collection, theoretical framework, hypothesis statement, and data analysis. Chapter 4 provides data description and result analysis and finally in section 5 gives conclusion and summary of the study. BACKGROUND OF STUDY Tax is the main sources of income for government. Tax is defined as a fee charged (levied) by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is direct tax. If tax is levied on the price of a good or services, then it is called an indirect tax. Malaysia is a very tax friendly country compared than the others. Income tax comparaly low and many taxes which are raised in other countries, do not exist in Malaysia. All earnings of companies and individuals acccumulated in, derived from or remitted to Malaysia are liable to tax. Government will used this tax revenues to fund all spending made by government in order to achieve an economic growth and also to promote a sound of economy. Government will present their budget in Parliament around September each year. Determination of budget is based on estimation of government revenue and spending. An increase in government revenue will increase the allocation for government spending. The tax rate is one of the components in government budget. The government will decide whether to increase or decrease the tax rate or to remain unchage based on the goals of government in each budget every year. Definition Of Terms Gross Domestic Product (GDP) Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a given period of time. It is also define as an economic measurement that monitors the overall income and output of a country. It is a way to interpret the overall prosperity of the economy. It is culculated on an annual basis with quarterly updates. The data produced by GDP is interpreted in number of ways. Some use it to measure the productivity of the country, in that it shows how much product was produced and sold. Others use it to measure the general health of the economy and the standard of living of those living in it. Inflation Rate Inflation rate is a measure of inflation, the rate of increase of a price index. It is the percentage rate of change in price level of time. The rate of decrease in the purchasing power of money is approximately equal. The used of inflation rate is to culculate the real interest rate, as well as real increases in wages. When interest rate are high, fewer people and businesses can afford to borrow and it will usually slows the economy down. Unemployment The definition of unemployment is an economic condition marked by the fact that individuals actively seeking jobs remain unhired. Unemployment is an important measure of the economyà ¢Ã¢â€š ¬Ã¢â€ž ¢s strength. A high unemployment rate generally indicates an economy in recession with few job opportunities, while a low unemployment rate points to an economy running at or near full throttle. Openness The meaning of à ¢Ã¢â€š ¬Ã…“opennessà ¢Ã¢â€š ¬? has become similar to the notion of à ¢Ã¢â€š ¬Ã…“free-tradeà ¢Ã¢â€š ¬?, that is a trade system where all trade distortions are eliminated. Openness also means the extent to which an economy is open to trade, and sometimes also to inflows and outflows of international investment. The openness here means à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬?trade opennessà ¢Ã¢â€š ¬? that consist of imports and exports from a large percentage of GDP. PROBLEM STATEMENT Malaysia is facing budget deficit every year since government expenditure exceed government revenue. If the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s budget are not sufficient, some of the macroeconomic factors canà ¢Ã¢â€š ¬Ã¢â€ž ¢t be achieved. Government cannot reduce unemployment and inflation rate and also cannot increase the economic growth and promote currency stability if they cannot reach a sufficient budget to cover all the expenditure. Tax is the main component of government revenue that will use to finance all the government expenditure to stabilize the economy. The expenditure here means the used of governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s revenue for the development and operational expenditure that will bring an economic growth. This study is undertaken to discover factors determinant of tax revenue which are independent variables namely Gross Domestic Product (GDP), inflation rate, unemployment and openness (trade) on dependent variable which is tax revenue. It tries to grasp those variables volatility impact on tax revenue in a given economic environment and horizon. Besides, this study was brought up to strenghten tho prove of previous similar study. However, due to the changing environmentof the economy, past researchers cannot be deem a suitable for current application. There is a need to revise the findings from the previous researchers, so it is consistent with current economic situation. The horizon of the research will cover from 1995 to the ending 2009. From this, all the indpendent variables are important towards dependent variable. Therefore the problem statement for this study is which variables that have strongly positive significant relationship towards tax revenue? RESEARCH QUESTION In order to realize the factors determining tax revenue, this question must be taken into consideration. The question is: What is the relationship between GDP and tax revenue? What is the relationship between Inflation rate and tax revenue? What is the relationship between Unemployment and tax revenue? What is the relationship between Openness and tax revenue? This question must be taken into consideration because the questions will answer the overall study and to make sure whether the problem lies within this factor or the others factor. OBJECTIVES OF STUDY General objectives The general objective of this study is to identify the factors determine tax revenue in Malaysia from year 1990 to 2009 which is 20 years. Specific objectives To know what are the factors that will increase or reduce the total tax revenue collected by government. To determine whether growth in GDP significantly affect tax revenue collected by government. To determine whether inflation in Malaysia significantly affect tax revenue collected by government. To determine whether unemployment in Malaysia significantly affect tax revenue collected by government. To determine whether the degree of openness in Malaysia significantly affect total tax revenue collected by the government. SIGNIFICANCE OF STUDY This research study can help the researcher to determine the most significant independent variables to the dependent variable. From this study, it can help the relevant parties to know which variables can give influence to the tax revenue collected government. The findings from this research can provide the information to the other researcher for future research that is similar or related with this study. SCOPE OF STUDY The scope of study is as follow: This study focus on factors determining tax revenue collected by government. The data will be collected from 1990 to 2009 which is twenty years in yearly. Four variables are choosen which are GDP, inflation rate, unemployment, and openness. Software that used as a regression tool is Statistical Package for Social Science (SPSS) 16.0. LIMITATIONS OF STUDY Cost Cost also becomes one of the limitations in doing this research because the researcher needs to bear all the cost and expenses in completing this research without getting any sponsorship. The cost that incurred such as stationeries expenses, photocopying, printing, transportation expenses and others are fully support by the researcher. Choice of Variables Choice of variables is the other limitation of the study. There have many variables that are determinants tax revenue and the researcher need to choose the exact variables so that it is suitable with the dependent variable. The variables that are choosen in this study are GDP, inflation rate, unemployment, and openness. Data Collection Data collection is one of the limitation of the study. The data covered a period of twenty years which is from 1990 to 2009 in yearly. Besides that, there have difficulties while choosing the exact journal and literature review that are strongly support all the variables. Accuracy of Data Accuracy also become a limitation of the study. Researcher used secondary sources in conducting this stdudy to collect data. The secondary sources such as annual reports, books, article, journal that the researcher found from internet and library. So, the accuracy of data depend from all the secondary sources that found in various materials. It means that, the researcher trying to maintain the originality and quality of the journal but the data needed depend on the materials. CHAPTER TWO 2.0 LITERATURE REVIEWS The amount of literature that directly deals with an analysis of factors that determine tax revenue collected by government in Malaysia is fairly limited. Minea and Villieu (2009), in their research show theoretically that a tighter monetary policy should induce the government to improve institutional quality in order to limit the erosion of tax revenue. The model developed by them exhibits two interesting results. First, by finding an inverse relationship between the level of effort and the inflation target, the authors show that the lower the inflation target is, the higher the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s effort in enhancing the quality of its institutions will be. In other words, by setting a lower inflation target, the à ¢Ã¢â€š ¬Ã…“supra-authorityà ¢Ã¢â€š ¬? encourages the fiscal authority to intensify its effort to implement a more efficient tax-collecting administration in order to recoup the loss of seigniorage revenue due to a tighter monetary policy. Effectively, a decrease in the inflation target reduces the interval in which governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s effort is minimal and increases the interval in which the effort in improving institutional quality is maximal. To conclude, it is important to note that the incentive of the government to improve the collection of tax revenue could be nonetheless diminished by a significant decrease of inflation rate. Huang and Wei (2006) extended the model developed by modifying the principal-agent setup and by incorporating an indicator of financial development and social welfare function. They conclude that, conditionally to the cost of institutional reforms, pursue a low inflation target encourages the government to increase the performance of its tax collection system. Therefore the adoption of Inflation Targeting in emerging countries is expected to exert a positive effect on tax revenue collection. Indeed, empirical literature has provided evidence that tax revenue is negatively affected by inflation, the so-called Olivera-Tanzi effect (Tanzi, 1992). This inverse relationship is usually explained by the fact that the real value of tax revenue is erode by inflation, since it exists for some tax categories a time-lag between the date of imposition and the effective collection of these taxes. Therefore, by theoretically maintaining inflation at low levels, and therefore by increasing the real value of tax revenue, Inflation Targeting may attenuate the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s tax collection effort. Lucotte (2010), used a methodology suggested by Dehejia and Wahba (1999) which consists of dropping treated observations whose the propensity score is higher than the maximum or smaller than the minimum in the control group. The result shows that the estimated average treatment effect on treated (ATT) are all found to be positive and statistically significant. This suggests that, on average, Inflation Targeting has a quantitatively large and statistically significant impact on increasing public revenue in emerging market economies. This result largely support their hypothesis that the adoption of Inflation Targeting may encourage the government to improve the collection of tax revenue. Clausing (2007), analyze the impact of the size and the profitability of the corporate sector on revenues from corporate tax. The result of her regression analysis confirm that the share of the value added of the corporate sector, profit level GDP per capita and GDP growth have a positive impact on revenues from corporate tax, whereas the unemployment level has a negative impact. Kubatova and Rihova (years of study are not stated), found that all of their examined factors (GDP growth, inflation and unemployment) were statistically significant. Along with the growth of GDP comes the growth of revenues from corporate tax. Inflation also has a similar effect. Conversely, higher unemployment leads to a decrease of the revenues from corporate tax. Qazi (2010), in his paper attempts to search the determinants of tax buoyancy of 25 developing countries. He found that growth in import and manufacturing sectors have positive and significant impact on tax buoyancy which shows with the increase in growth of import sector tax revenue collection increases through import duties, tariff, sales tax on import stage and withholding income tax at import stage. Saeed, Ahmad and Akhtar (2010), have studied the impact of corruption index on the tax revenues over 27 developing countries and use annual data for the 2002 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2006 periods found that GDP per capita is positive but it is significance at 12 percent level. The coefficient of the ratio of exports and imports (openness) to GDP is positive but not significance at even 10 percent level. CHAPTER THREE 3.0 RESEARCH METHODOLOGY AND DESIGN RESEARCH DESIGN 3.1.1 Purpose of Study The purpose of this study is to determine the factors determinant tax revenue in Malaysia namely Gross Domestic Product (GDP), inflation rate, unemployment and openness. 3.1.2 Research Interference Most of the data used in this study are obtained from the secondary sources from various resources that have been analyzed. The data are collected from an internet resources. 3.1.2.1 Accuracy and Data Reliability Multiple regression analysis and a correlation research design are selected as the method of this study in order to investigate the variables that are associated with the problem. Two random variables are positively correlated if high values of one are likely to be associated with high values of the other and negatively correlated if high values of one are likely to be associated with low values of the other known as correlation. A statistical method used with one dependent variable and more than one independent variable known as multiple regression analysis. Thus, the accuracy and the data reliability of the data may partly depend on the published materials. 3.1.3 Study Setting Secondary data from various resources have been analyzed. Research here is a field study where it is non contrive setting with minimial interference. 3.2 DATA COLLECTION In completing this study, data is the most important thing needed. From the data collected, the researcher can make analysis and interpret the output to find out the result. Secondary Data It refer to the data collected by someone for some other purposes. The sources include census reports, organizational records, surveys and annual reports. This secondary data used by the researcher to gain the idea and information to develop the literature review and complete this study. 3.2.1.1 Internet and website Google Search The major sources that the researcher choose to find and gather journal that related with this study. This website are useful to the reasercher because help the researcher to gain the information about this study. 3.2.1.2 Library Research The researcher find the journal and books through the library reserach. Some of the information from journals and published materials can be used as references to the researcher to get a better picture of the situation. THEORETICAL FRAMEWORK INDEPENDENT VARIABLES GDP Tax Revenue Inflation Rate DEPENDENT VARIABLE Unemployment Openness Figure 1.0: Theoretical Framework Based on the figure 1.0 above, it shows the relationship between the dependent variable which is Tax Revenue and the independent variables that includes Gross Domestic Product (GDP), Inflation Rate, Unemployment and Openness (trade). All these independent variables will be test to determine the relationship among these independent variables and dependent variables. 3.3.1 Priory Relationship 1. GDP and Tax Revenue : if GDP increase, the total tax revenue collected by government will also increase. This two variable have a positive relationship. 2. Inflation Rate and Tax Revenue : if an inflation rate increase, the total tax revenue collected by government will decrease. This two variable have a negative relationship. 3. Unemployment and Tax Revenue : if unemployment increase, the total tax revenue collected by government will decrease. This two variable have a negative relationship. 4. Openness and Tax Revenue : if the degree of openness increase, the total tax revenue collected by government will also increase. This two variable have a positive relationship. HYPOTHESIS STATEMENT The purpose of the hypothesis statement is to illustrates which of the hypothesis is most affect the dependent variable. The hypothesis are: H0 : GDP is not statistically significant to affect tax revenue in Malaysia H1 : GDP is statistically significant to affect tax revenue in Malaysia. H0 : Inflation is not statistically significant to affect tax revenue in Malaysia H1 : Inflation is indeed statistically significant to affect tax revenue in Malaysia. H0 : Unemployment is not statistically significant to affect tax revenue in Malaysia. H1 : Unemployment is indeed statistically significant to affect tax Revenue in Malaysia. H0 : Openness is not statistically significant to affect tax revenue in Malaysia. H1 : Openness is indeed statistically significant to affect tax revenue in Malaysia. DATA ANALYSIS In this study, the data analysis need to be explained clearly. The data also consists of independent variable and dependent variable which is GDP, inflation rate, unemployment and openness . Pearson coefficient of correlation is used to the extent of relationship among different variables. All the data has been analyzed by using Statistical package Science for Social (SPSS) program. The data will be examine by: Beta analysia (Coefficient) To find out the relationship between independent variables and dependent variable. Does the relationship exist or not. Coefficient of Determination (R-squared) To know how well the independent variables explain the variation of the dependent variable in the regression. T-Statistic Identify significant relationship of each independent variable with the dependent variable F-Statistic Testing the significance of the overall independent variables with the dependent variable Standard Error of Estimation (See) The objective is to identify whether a particular variableis significant at a certain level of confidence. Multiple Regression Analysis TR = f ( GDP, Inf, Un, Op )This technique will focus on a relationship between a dependent variable and one or more independent variable. The regression analysis help the researcher to understand how the typical value of the dependent variable changes when any one of the independent variable is varied, while the other independent variables are held fixed. TR = a + b1 GDP + b2 Inf + b3 Un + b4 Op + Ɇº Where: TR = Tax Revenue GDP = Gross Domestic Product Inf = Inflation Rate Un = Unemployment Op = Openness The dependent variable in the above equation is tax revenue while the independent variables are GDP, inflation rate, unemployment and openness. Beta Analysis (Coefficient) Beta analysis is a measurement used in order to find out the relationship between independent variables and dependent variable does exist or not. Therefore, if the result is positive that means the independent variables can explain the changes in the dependent variable. Coefficient of Determination (R ²) The coefficient of determination is a statistic that will give information the goodness of fit of model. It is a statistical measure of how well the regression line approximates the real data points. Is a descriptive measure between zero and one, indicating how good one term is at predicting another. The value of coefficient of determination is shown below: Range of R ² Strength of relationship No relationship with dependent variable 0.1 to 0.5 Weak relationship between independent variables and dependent variable 0.6 to 0.9 Dependent variable is strongly explained by independent variables 1 Dependent variable ia perfectly explained by Independent variables T-Statistic T-statistic is used to determine whether the significance between the dependent variable and the independent variables exists or not. If the computed T-stat is greater than book T-value, the independent variable is statistically significant or vice-versa. In order to get book T-value, the degree of freedom should be culculated at a 95% confidence interval. The degree of freedom can be calculated as follow: Degree of freedom = n à ¢Ã¢â€š ¬Ã¢â‚¬Å" k à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1 Where: k = Number of Independent Variable n = Number of Observation The results for T-statistic: Accept H1, reject H0 If the computed t-statistic is greater than the book T-value at a 95% confidence interval. Reject H1, accept H0 If the computed t-statistic is lower than the book T-value at a 95% confidence interval. F-Statistic F-test is an overall test of the null hypothesis that group means on the dependent variable do not differ. It is used when comparing statistical models that have been fit to a data set, in order to identify the model that best fit the popultaion from which the data were sampled. F-test mainly arise when the models have been fit to the data using least squares. In order to get book F-value, it should be culculated at a 5% significant level. Formula for book F-value is as follow: Book F-value = FÃŽÂ ± (k à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1, n à ¢Ã¢â€š ¬Ã¢â‚¬Å" k) Where: ÃŽÂ ± = Significant level (5%) k = Number of Independent Variable n = Number of Observation k à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1 = Numerator n à ¢Ã¢â€š ¬Ã¢â‚¬Å" k = Denominator The result for F-Statistics: Accept H1, reject H0 If the computed F-Statistic is greater than the book F-value at 5% significant level. Reject H1, accept H0 If the computed F-Statistic is lower than the book F-value at 5% significant level. 3.5.6 Standard Error of Estimation (See) It is a measure of the dispersion of tthe data points from the regression line. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s objective is to identify whether a particular variable is significant at a certain level of confidence. Standard error can be measured in two ways: Using T-stat See = b t-stat Degree of freedom Df = n à ¢Ã¢â€š ¬Ã¢â‚¬Å" k à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1 It is also useful in determining the range in which the dependent variable will point to a specified probability. CHAPTER FOUR 4.0 DATA DESCRIPTION AND ANALYSIS This chapter focuses on the data description and result analysis. All the data collected in this study were processed using Microsoft Office Excel and the SPSS program. Microsoft Office Excel was used to describe the performance of dependent variable and independent variables. SPSS program was used to analyze the data from the correlation and regression analysis. The method was used to analyze the data was Multiple Regression Correlation Analysis. A multiple regression analysis involves more than one independent variable. The process of evaluating is the same with simple regression, but in order to derive the estimated regression, a computer is employed due to the complex nature of data and time required. The presentation of findings is made to examine the relationship among independent variables (GDP, inflation, unemployment and openness) and dependent variable (tax revenue). This study used Multiple Regression Method Analysis which is the interpretation of Regression Analysis includes Beta Analysis (Coefficient), Coefficient of determination (R-Squared), T-statistics and F-statistics. 4.1 DATA DESCRIPTION Dependent Variable Figure 1 Independent Variables Figure 2 Gross Domestic Product is the value at current prices of the total annual output of final goods and services produced in a country. .. Figure 3 Inflation rate is the percentage annual increase in the general price level, commonly measured by the consumer price index (CPI) or some comparable price index. . Figure 4 Unemployment rate is Figure 5 Openness is 4.2 INTERPRETATION OF DATA AND FINDINGS 4.2.1 Research Analysis From the data obtained, it shows the result of regression output as stated in Table 1 as follows: Table 1 Variables Constant GDP Inflation Unemployment Openness Beta Analysis -144980.369 13.481 1657.557 5860.522 -572.845 T-statistics 8.284 5.562 3.435 2.643 7.017 R-squared : 0.990 F-statistics : 358.696 Standard error of estimation : 6122.50419 4.2.2 Regression Equation From the result obtained, we can derive the regression linear function as follows: General function: TR = f ( GDP, Inf, Un, Op ) Multiple Regression Equation: TR = a + b1 GDP + b2 Inf + b3 Un + b4 Op + Ɇº TR = à ¢Ã¢â€š ¬Ã¢â‚¬Å" 144980.369 + 13.481 GDP + 1657.557 Inf + 5860.522 Un à ¢Ã¢â€š ¬Ã¢â‚¬Å" 572.845 Op + Ɇº 4.3 RESULT OF FINDINGS 4.4.1 Beta Analysis (Coefficient) Beta analysis is a measurement used in order to find out whether a relationship exists between the independent variables and the dependent variable. Table 2: The result of beta analysis Variables Beta Analysis GDP 13.481 Inflation 1657.557 Unemployment 5860.522 Openness -572.845 Beta analysis for Gross Domestic Product (GDP) From the results obtained, it shows that when GDP increase by 1 unit, tax revenue will increase by 13.481 units. The increase in GDP will raised the total tax revenue collected by government. It shows that this two variable have a positive relationship and consistent with the economic theory. This is because .. Beta analysis for Inflation From the results obtained, it shows that an increase of 1 unit in inflation can explain an increase of 1657.557 units in tax revenue. The increase in inflation will increase the total tax revenue collected by government. It shows that this two variable have a positive relationship and not consistent with the economic theory. This is because .support dengan LR. Beta analysis for Unemployment From the results obtained, it shows that when an unemplyment increase by 1 unit, tax revenue will increase by 5860.522 units. The increase in an unemployment will raised the total tax revenue collected by government. It shows that this two variable have a positive relationship and not consistent with the economic theory. This is because . support dengan LR. Beta analysis for Openness From the results obtained, it shows that when an openness increase by 1 unit, tax revenue will decrease by 572.845 units. The increase in an openness will reduced the total tax revenue collected by government. It shows that this two variable have a negative relationship and not consistent with the economic theory. This is because . support dengan LR. 4.4.2 Coefficient of Determination (R-squared) Coefficient of determination or R-squared measures what percentage of a change in the dependent variable can be measured or explained by the change in the independent variables. It is also explains the level of the explanatory power. If R-squared = 0 (no explanatory power) This means that none of the change in the dependent variable can be measured by the change in the independent variables. The estimated equation is useless. If R-squared = 1 (full explanatory power) This means 100% of the change in the dependent variable can be explained by the change in the independent variables. From the results obtained, it shows that R-squared is 0.990. This means that 99% change in the dependent variable can be explained by the change in independent variables. However, 1% can be explained by other variables. This means that the dependent variable is strongly explained by independent variables. Besides, it also has an accepted higher explanatory power by 99%. 4.4.3 T-statistic T-statistic is used to determine whether the significance between the dependent variable and the independent variables exists or not. If the computed T-stat is greater than book T-value, the independent variable is statistically significant or vice-versa. In order to get book T-value, the degree of freedom should be culculated at a 95% confidence interval. Degree of freedom = n à ¢Ã¢â€š ¬Ã¢â‚¬Å" k à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1 = 20 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1 = 15 From the T-distribution table, the book T-value is 2.131 at 95% confidence interval level. Table 3: The results of T-statistic Variables T-statistics Findings GDP 5.562 2.131 Significant Inflation 3.435 2.131 Significant Unemployment 2.643 2.131 Significant Openness 7.017 2.131 Significant T-statistic for Gross Domestic Product (GDP) From the results obtained, the culculated T-value is higher than the book T-value (5.562 2.131) at a 95% confidence interval. H0 : GDP is not statistically significant to affect tax revenue in Malaysia. H1 : GDP is statistically significant to affect tax revenue in Malaysia. Therefore, we accept H1 and reject H0 because gross domestic product (GDP) is statistically significant to affect tax revenue in Malaysia. T-statistics for Inflation From the results obtained, the culculated T-value is higher than the book T-value (3.435 2.131) at a 95% confidence interval. H0 : Inflation is not statistically significant to affect tax revenue in Malaysia H1 : Inflation is indeed statistically significant to affect tax revenue in Malaysia. Therefore, we accept H1 and reject H0 because inflation is indeed statistically significant to affect tax revenue in Malaysia. T-statistics for Unemployment From the results obtained, the culculated T-value is higher than the book T-value (2.643 2.131) at a 95% confidence interval. H0 : Unemployment is not statistically significant to affect tax revenue in Malaysia. H1 : Unemployment is indeed statistically significant to affect tax revenue in Malaysia. Therefore, we accept H1 and reject H0 because unemployment is indeed statistically significant to affect tax revenue in Malaysia. T-statistics for Openness From the results obtained, the culculated T-value is higher than the book T-value (7.017 2.131) at a 95% confidence interval. H0 : Openness is not statistically significant to affect tax revenue In Malaysia. H1 : Openness is indeed statistically significant to affect tax revenue in Malaysia. Therefore, we accept H1 and reject H0 because openness is indeed statistically significant to affect tax revenue in Malaysia. 4.4.4 F-statistics F-statistic is used to test the hypothesis that the variation in the independent variables explained a significant portion of the variation in the dependent variable. The formula of book F-value is as follow: Book F-value = FÃŽÂ ± (k à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1, n à ¢Ã¢â€š ¬Ã¢â‚¬Å" k) = F0.05 (5 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1, 20 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 5) = F0.05 (3, 16) Numerator Denominator From the F-distribution table, the book F-value is 3.06. The culculated F-statistic is 358.696 3.06 that means all the independent variables (GDP, Inf, Un and Op) are said to be statistically significant. H0 : All the independent variables are not significant enough to affect total tax revenue collected by government in Malaysia. H1 : All the independent variables are significant enough to affect total tax revenue collected by government in Malaysia. From the results obtained, we accept H1 and reject H0 since there is significance for the overall model. 4.4.5 Standard error of estimation (See) It is a measure of the dispersion of the data points from the regression line. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s objective is to identify whether a particular variable is significant at a certain level of confidence. Standard error of estimation can be measured in two ways by using T-statistic and degree of freedom. It also useful in determining the range which dependent variable will point to within a specified probability. From the results obtained, the standard error of estimation is 6122.50419, which means the smaller the standard error, the closer the data points are to the regression line.