scholarly journals The Impact of Taxation on Economic Growth: Case Study of OECD Countries

2015 ◽  
Vol 14 (4) ◽  
pp. 309-328 ◽  
Author(s):  
Rudolf Macek
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Value Added ◽  
Oecd Countries ◽  
Corporate Taxation ◽  
Income Taxes ◽  
Personal Income ◽  
Individual Growth ◽  
Tax Revenues ◽  
The Impact

Abstract The aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the OECD countries for the period of 2000–2011. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human capital and technology. The analysis in this paper is based on extended neoclassical growth model of Mankiw, Romer and Weil (1992), and for the verification of relation between taxation and economic growth the panel regression method is used. The taxation rate itself is not approximated only by traditional tax quota, which is characteristic by many insufficiencies, but also by the alternative World Tax Index which combines hard and soft data. It is evident from the results of both analyses that corporate taxation followed by personal income taxes and social security contribution are the most harmful for economic growth. Concurrently, in case of the value added tax approximated by tax quota, the negative impact on economic growth was not confirmed, from which it can be concluded that tax quota, in this case as the indicator of taxation, fails. When utilizing World Tax Index, a negative relation between these two variables was confirmed, however, it was the least quantifiable. The impact of property taxes was statistically insignificant. Based on the analysis results it is evident that in effort to stimulate economic growth in OECD countries, economic-politic authorities should lower the corporate taxation and personal income taxes, and the loss of income tax revenues should be compensated by the growth of indirect tax revenues.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

scholarly journals The long-run impact of personal income taxation on economic development: Evidence from Croatia

2017 ◽  
Vol 3 (1) ◽  
pp. 35-44
Author(s):  
Irena Palić ◽  
Berislav Žmuk ◽  
Barbara Grofelnik
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Personal Income ◽  
Income Taxation ◽  
Economic Conditions ◽  
The Public ◽  
Long Run ◽  
Finance Theory ◽  
The Impact ◽  
Personal Income Taxation

AbstractSince the endogenous growth model appeared in the economic theory, taxation has been considered as one of the key determinants of the economic growth. In the public finance theory, taxation is considered to have a negative impact on economic growth, which is explained by implications of tax revenues distortions on the economic activity. This assumption has been investigated by many empirical studies. The aim of this paper is to analyse the impact of personal income taxation on economic conditions in Croatia in the long-run. After providing a brief insight into the economic and the public finance theory regarding taxation and economic growth, previous relevant research is presented. The empirical analysis of the impact of personal income taxation on economic conditions in Croatia is conducted using the Johansen cointegration approach. The existence of cointegration is examined and the error correction model is estimated using monthly data from January 2000 to March 2016. The results of the research show that personal income taxation in Croatia has a significant negative impact on the economic growth in the long-run, which is in line with the economic theory and relevant empirical research.

scholarly journals ПРОГНОЗУВАННЯ ЕФЕКТИВНОСТІ ФІНАНСОВОЇ ПОЛІТИКИ В УМОВАХ ЗАГОСТРЕННЯ КРИЗОВИХ ЯВИЩ В ЕКОНОМІЦІ ВНАСЛІДОК ПАНДЕМІЇ COVID-19

2019 ◽  
pp. 99-112
Author(s):  
Луценко А.С.
Keyword(s):  
Regression Model ◽  
Small Businesses ◽  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Negative Consequences ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
Pessimistic Scenario ◽  
The Impact

The article substantiates that in the context of solving the problem of improving the forms and methods of fiscal influence on the economy, planning strategic directions of fiscal policy should be based on the principles of non-discredit regulation, which is achieved if changes in tax revenues and government transfers depend on GDP. To this end, a correlation-regression analysis of the impact of GDP on tax revenues to the consolidated budget, where the results of the regression model are used to forecast the revenue side of the budget in different scenarios of economic development in a pandemic. The negative influence of factors is marked: a significant drop in effective demand of the population; significant unemployment due to the return of workers, mass layoffs; mass bankruptcy of medium and small businesses; deep protracted recession; accelerating inflation. To build a regression model, two factors were selected that are considered as key factors influencing the dynamics of the revenue side: gross domestic product, consumer price index. The forecast was based on actual data for the period 2007-2019. The calculations showed that the growth rate of tax revenues to the budget of Ukraine will decrease significantly due to the impact of the crisis caused by the pandemic. In particular, under the optimistic forecast, tax revenues will increase by more than eight percent in 2020, and under the pessimistic forecast will decrease by seven percent. In 2021, the gap between the pessimistic and optimistic scenarios has narrowed significantly and according to calculations, we can expect a slight increase in tax payments by twelve percent. The level of redistribution will also decrease to about twenty-five percent. It is proved that when building a model of fiscal regulation, the impact of certain types of taxes on the revenue side of the budget, in particular, personal income tax and value added tax, should be taken into account. It is established that the crisis phenomena, accompanied by bankruptcy and closure of business entities, and hence an increase in the number of laid off employees, will lead to a decrease in budget revenues from personal income tax. The results of forecast calculations show that this source of revenue should be expected to decrease by at least ten percent, and under the pessimistic scenario - the decline in revenues from this tax in 2020 could reach twenty percent. It is determined that the negative dynamics of VAT revenues can be observed only in the pessimistic scenario, and the decrease is insignificant - about five percent. Under the optimistic scenario, revenues will increase by about twenty percent in 2020 and thirty-five percent in 2021 compared to 2019. It was found that the most «vulnerable» to the crisis caused by the COVID-19 pandemic is the article of personal income tax revenues, which, accordingly, requires the development of a certain algorithm of measures to create sufficient fiscal incentives to minimize the negative consequences.

scholarly journals Impact Des Structures Fiscales Sur La Croissance Economique Au Congo-Brazzaville

2017 ◽  
Vol 13 (34) ◽  
pp. 163
Author(s):  
Ferdinand Moussavou
Keyword(s):  
Economic Growth ◽  
Empirical Evaluation ◽  
Income Taxes ◽  
Personal Income ◽  
Corporate Taxes ◽  
Short Term ◽  
Goods And Services ◽  
Congo Brazzaville ◽  
The Impact

This article proposes to make from Congolese data an empirical evaluation of the impact of tax structures on economic growth. It is based on the effects of state transfers to businesses and on the distinction between personal income taxes, corporate taxes and taxes on goods and services. The results obtained from Dickey and Fuller's model show that, in the long term, personal income taxes, taxes on goods and services, total state revenues, state transfers to enterprises and gross fixed capital formation affect economic growth. In the short term, corporate taxes, revenues and transfers from the state to companies exert an influence on this growth. On the other hand, long-term and short-term results show that government revenues and transfers affect economic growth. These results made it possible to identify the limits of the economic policies implemented in Congo-Brazzaville.

scholarly journals ECONOMIC GROWTH AND EMPLOYMENT IN AGRICULTURAL SECTOR ON POVERTY IN ACEH PROVINCE

TRIKONOMIKA ◽  
2019 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Reovasimulo Anakusara ◽  
Abd Jamal ◽  
Chenny Seftarita ◽  
Indra Maipita
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Negative Impact ◽  
Value Added ◽  
Poverty Rate ◽  
Series Data ◽  
Aceh Province ◽  
The Government ◽  
The Impact

This empirical study aims to analyze the impact of economic growth and employment in the agricultural sector on poverty in Aceh Province. The study is conducted on annual time series data for the period of 1995-2017 while to explain the research objectives used Autoregressive Distributed Lag (ARDL) model and Granger Causality. The results found, in the short term, only employment in the agricultural sector has a significant effect on poverty. Meanwhile, in the long term, economic growth has a profound and negative impact on poverty. On the contrary, the absorption of labor in the agricultural sector tends to increase poverty. In addition, the results obtained that economic growth has a unidirectional relationship with employment in the agricultural sector. It was, therefore, suggested that the government should prioritize economic development in regions that have relatively high poverty rate and build an agro-industry in Aceh to increase agricultural value added and also absorb more labor so it can enable to reduce the poverty rate.

scholarly journals The Relationship Between Direct Taxes and Economic Growth in Oecd Countries

2019 ◽  
Vol 57 (3) ◽  
pp. 273-286 ◽  
Author(s):  
Jadranka Đurović-Todorović ◽  
Ivan Milenković ◽  
Branimir Kalaš
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Income Tax ◽  
Oecd Countries ◽  
Personal Income ◽  
Corporate Income Tax ◽  
Domestic Product ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
Gdp Growth Rate

AbstractThe aim of the paper is to identify a potential linear correlation between direct taxes and economic growth. The subject of the paper includes estimating the level and intensity of correlation between direct taxes and economic growth in OECD countries for the period 1996-2016. The study analyses tax forms such as personal income tax, corporate income tax and tax on property, and their potential relationship with economic growth, measured by GDP growth rate. Also, tax revenues growth has been included to determine whether it directly affects the economic growth in observed countries. The results of the group correlation matrix have shown that there is a statistically significant relationship between tax revenues growth, personal income tax, corporate income tax and gross domestic product in OECD countries. However, it is important to note that tax on property and gross domestic product are not significantly correlated at the OECD level, which is logical given the low share of this tax in those countries.

scholarly journals The Impact of Fiscal Policy on Economic Growth in Palestine

2021 ◽  
Vol 13 (8) ◽  
pp. 51
Author(s):  
Suleiman M. Abbadi ◽  
Mohammed Al-Olabi ◽  
Haytham Owida ◽  
Abdelfattah Abu Shuku
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Value Added ◽  
High Growth ◽  
High Growth Rate ◽  
Foreign Assistance ◽  
Tax Rate ◽  
Tax Revenues ◽  
Rate Of Growth ◽  
The Impact

This study aims at finding the impact of fiscal policy with its various instruments such as, current expenditures, capital expenditures, Tax revenues, non-Tax revenues, foreign assistance and value added tax revenues on economic growth in Palestine represented by the rate of growth of real GDP during the period 1996-2018. A Multiple Regression Analysis was used to build the model and test the hypothesis. The estimated results showed four of the six independent variables have a significant effect on economic growth, with current and development expenditure having a positive effect while tax and non-tax revenue having a negative effect. On the other hand, foreign aid and clearing tax by Israeli authorizations have no significant effect on economic growth, (though, the last one is significant at 10%). The study has also found that government expenditures need to be redistributed between current and development expenditures so as to increase the share of development expenditures in order to maintain a high growth rate. The paper recommends that the tax rate should be reduced on productive projects which are designed to decrease the unemployment rate and increase the rate of growth. The study has also pointed out to the significance of re-negotiating the Paris accord with the Israeli authorities so as to improve the terms of this accord, especially in the case of collecting the VAT revenues.

Has Aid Helped in Pakistan?

1997 ◽  
Vol 36 (4II) ◽  
pp. 947-957 ◽  
Author(s):  
Shahrukh Rafi Khan
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Negative Association ◽  
Causal Impact ◽  
The Impact ◽  
Over Time

This paper has a two-fold objective: first, to examine the terms on which Pakistan receives aid and whether its debt situation is sustainable, and second, to examine the impact of aid and debt on economic growth. It is found that there is little encouraging that can be said about how the terms on which Pakistan has received aid over time have changed, and its current debt situation is not sustainable. Also reported is the analysis done elsewhere which shows that aid has a negative (Granger) causal impact on GDP, and aid has a robust negative impact on economic growth after controlling for supplyside shocks. We provide various reasons for this negative association.

TAX POLICY IN THE FIELD OF EXCISE TAXES ON TOBACCO PRODUCTS IN RUSSIA

2020 ◽  
Vol 3 (3) ◽  
pp. 36-40
Author(s):  
A. A. IDRISOV ◽  
Keyword(s):  
Tax Policy ◽  
Negative Impact ◽  
Tobacco Products ◽  
Excise Tax ◽  
Trade Relations ◽  
Excise Taxes ◽  
Tax Revenues ◽  
Eurasian Economic Union ◽  
Economic Union ◽  
The Impact

The article is devoted to the analysis of the features of excise tax revenues to the budget of the Russian Federation. The analysis of the negative impact on the economy of the distribution of illegal tobacco prod-ucts - cigarettes, as well as the impact of new substitutes for this product. The issues of harmonization of the excise policy of the countries of the Eurasian Economic Union and the regulation of the tax policy in the field of excise taxes on tobacco products, the introduction of new excise taxes on electronic substitutes are considered. These measures are aimed at creating sustainable export-import foreign trade relations and a single market of legalized smoking products. The article is aimed at developing recommendations on strengthening the economy of tobacco production in the context of the creation of the Eurasian Economic Union, as well as on increasing tax revenues from them.

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