scholarly journals Corruption, fiscal policy, and growth: a unified approach

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Sugata Ghosh ◽  
Kyriakos C. Neanidis
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Income Tax ◽  
Government Expenditure ◽  
Tax Revenue ◽  
Unified Approach ◽  
Unified Framework ◽  
Bureaucratic Corruption ◽  
Inflation Rates ◽  
The Impact

AbstractWe study the effects of bureaucratic corruption on fiscal policy and economic growth, where corruption (i) reduces the tax revenue raised from households, (ii) inflates the volume of government spending, and (iii) reduces the productivity of “effective” government expenditure. We distinguish between the policies pursued by (a) a non-optimizing, and (b) an optimizing government. For both cases, corruption leads to higher income tax and inflation rates and a lower level of government spending, thus hindering growth. In the circumstances, an activist government could allocate its resources in attempting to reduce the type of corruption that harms growth the most. Finally, the findings from our unified framework could rationalize the sometimes conflicting empirical evidence on the impact of corruption on growth in the literature.

scholarly journals The South African tax mix and economic growth

2014 ◽  
Vol 8 (2) ◽  
pp. 201-210 ◽  
Author(s):  
AH De Wet ◽  
NJ Schoeman ◽  
SF Koch
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
South African ◽  
Government Spending ◽  
Government Expenditure ◽  
Indirect Taxation ◽  
Size Of Government ◽  
Direct Taxation ◽  
The Impact ◽  
Direct Tax

The research reported in this paper suggests that government fiscal policy can influence economic growth through alterations in the tax mix and the overall size of government spending.   The authors estimate the impact on economic growth of changes in fiscal policy via government expenditure, direct taxation and indirect taxation.  The results show that economic growth is negatively affected by increases in the size of government, as reflected in its expenditures and direct tax revenues, although significant indirect tax effects are not found.     

scholarly journals Economic impacts of illness in older workers: quantifying the impact of illness on income, tax revenue and government spending

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Deborah J Schofield ◽  
Rupendra N Shrestha ◽  
Richard Percival ◽  
Megan E Passey ◽  
Simon J Kelly ◽  
...  
Keyword(s):  
Government Spending ◽  
Older Workers ◽  
Income Tax ◽  
Economic Impacts ◽  
Tax Revenue ◽  
The Impact ◽  
Income Tax Revenue

scholarly journals Impact of Public Policy Shocks on Components of Aggregate Demand in Pakistan

2020 ◽  
pp. 95-111
Author(s):  
Saima Shafique ◽  
Muhammad Mansoor Ali ◽  
Saif Mujahid Shah
Keyword(s):  
Fiscal Policy ◽  
Aggregate Demand ◽  
Government Expenditure ◽  
Tax Revenue ◽  
Impulse Response Functions ◽  
Tax Rates ◽  
Policy Shocks ◽  
The Government ◽  
Tax Changes ◽  
The Impact

Fiscal policy has strong distributional effects as the alteration in tax rates and spending decisions cause different sectors of the economy to respond differently. Correct information about this reaction and understanding transmission mechanism is essential to create policies that can have development and growth effects. The study analyzed the impact of fiscal policy on disaggregated data of Pakistan in a SVAR setting. The analysis reveals an uneven distribution of fiscal policy shocks across different sectors of Pakistan with varying degrees of responsiveness. There is heterogeneity in the response of different sectors as well as components of aggregate demand in Pakistan to fiscal policy shocks as revealed in impulse response functions. It is results reveal that tax revenue shock generated a higher response in different sectors than the government expenditure shock conforming to the theoretical expectation that tax changes impact the agents faster than the expenditure decisions. This regressive behavior in Pakistan seems mostly due to higher spending on debt servicing and maintaining a large public sector with huge spending on pensions and social security networks.

scholarly journals The Tax Revenue in Iraq Between the Efficiency of Tax Administration and the Elements of the Success of the Tax System

2017 ◽  
Vol 1 (2) ◽  
pp. 53-73
Author(s):  
.Mohamed Helou Daoud Al-Khorsan ◽  
Hana Ali Hussein Al-Quraishi ◽  
Ziad Taher Mohamed Ali
Keyword(s):  
Fiscal Policy ◽  
Tax Revenue ◽  
Tax Administration ◽  
State Budget ◽  
Tax System ◽  
Economic Changes ◽  
Tax Revenues ◽  
Political Ideas ◽  
Modest Contribution ◽  
The Impact

There is growing interest by governments in different systems of government in which political ideas which it believes, taxes as instruments of fiscal policy, seeking to achieve through which political, social and economic goals as well as "financial targets, as the tax policy formulated objectives and plans its revenues consistently and harmony with the objectives of economic policy in general, In the context of the tax reform, different countries have resorted to the search for possible alternatives to maintain a financially, economically and socially effective fiscal policy. Iraq should not be different from these countries. It establishes a fiscal policy to achieve tax revenues by activating the role of the tax system to strengthen the budget in the light of economic changes and financial crises in recent years, The main reason for the need to activate the tax system in Iraq is the very modest contribution of tax revenues within the state budget, To address the reasons for the low contribution of tax revenues it is necessary to identify the elements of the success of the tax system and discuss the tax revenue in two aspects The level of general headquarters and branches on the one hand, and knowledge the facilities or obstacles which is provided by the tax system   to increase the proceeds of the receipt of the other, and finally reach the reform of the tax system, which we find an important requirement for the reform of the Iraqi financial and economic system in this time, In this context, the study deals with the tax revenues in Iraq as planned by the tax administration in accordance with the statistics of the tax administration and then identify the impact of the tax system in making the proceeds low for public revenues.

scholarly journals Economic policy and confidence of economic agents – a causal relationship?

2020 ◽  
Vol 20 (4) ◽  
pp. 471-484
Author(s):  
Silvo Dajčman
Keyword(s):  
Fiscal Policy ◽  
Granger Causality ◽  
Government Spending ◽  
Government Expenditure ◽  
Policy Instruments ◽  
Consumer Confidence ◽  
Causality Analysis ◽  
Economic Agents ◽  
Business Confidence ◽  
The Government

AbstractThe purpose of this paper is to study whether innovations in monetary and fiscal policy are a leading indicator of future business and consumer confidence and reverse applying the panel Granger causality analysis to two periods in the history of the euro area: before and after the start of the Great Recession. The results show that Granger causality interaction between the confidence of economic agents and the stance of monetary policy (measured by the shadow rate) is stronger than between the former and the fiscal policy instruments. The European Central Bank (ECB) shadow rate innovations Granger caused business and consumer confidence in both periods, but also indicators of confidence Granger caused the shadow rate. No such feedback could be established between two fiscal policy instruments (government expenditure and revenue growth) and the indicators of confidence. Government spending and revenues Granger caused business confidence in the first subperiod, but not in the second subperiod when the causality reversed. The government revenues Granger caused consumer confidence in the first subperiod, while government expenditures in the second subperiod. Consumer confidence Granger caused government spending in the first subperiod.

scholarly journals Effect of Corporate Tax on Government Expenditure in Nigeria

2021 ◽  
Vol 1 (5) ◽  
pp. 157-171
Author(s):  
Patrick Ologbenla
Keyword(s):  
Income Tax ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Value Added ◽  
Corporate Income Tax ◽  
Value Added Tax ◽  
Independent Variable ◽  
The Government ◽  
The Impact ◽  
Bound Test

The study investigated the impact of corporate income tax on the government expenditure in Nigeria. Data on corporate income tax, value added tax, interest rate, gross domestic product, petroleum profit tax and consumer price index were collected and used as independent variable in the study while data on public expenditure were collected and used as independent variable in the estimated model. The ARDL bound test was applied and the result showed that corporate income tax have long run relationship that is significant with government expenditure. Other forms of tax such as value added tax and petroleum profit tax also have significant impact on government expenditure. The study concluded that corporate income tax should be sustained in order to ensure that government continue to fulfill her obligation of provision of social amenities that will promote the economic growth of the country.

scholarly journals Tax Revenue, Tax Reform and Government Expenditure: The Case of Nigerian Economy (1994 – 2017)

2020 ◽  
pp. 1-12
Author(s):  
Chinedu Jonathan Ndubuisi ◽  
Onyekachi Louis Ezeokwelume ◽  
Ruth Onyinyechi Maduka
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Reforms ◽  
Level Of Significance ◽  
Excise Duties

The objective of this study is to empirically investigate the effect of tax revenue and years tax reforms on government expenditure in Nigerian. Tax revenue were explained using custom and excise duties, company income tax, value-added tax and tax reforms explained by the years in which reforms took place measured by dummy variables as proxies. In conducting this research, an annual time series data from central bank statistical bulletins and Federal Inland revenue Service of Nigeria spanning from 1994-2017 were employed. The data were tested for stationarity using the Augmented Dicker-Fuller Unit Root Test and found stationary at first difference. The Johansen co-integration test was also conducted and showed that the variables are co-integrated at the 5% level, which implied that there is a long-run relationship between the variables in the model. The presence of co-integration spurred the use of vector error correction model and VEC granger causality to determine the effects and decision for the study objective. Findings revealed that Customs and Excise Duties has positive (3.96) and significant (-8.38) impact on government expenditure at 5% level of significance (t=8.38>1.96), Company Income Tax has negative (-1.25) and significant (2.98) impact on government expenditure at 5% level of significance (t=2.98>1.96), Value added tax has positive (8.54) and significant (3.90) impact on government expenditure at 5% level of significance (t=3.90>1.96) and Tax reforms periods has negative(-3.52E+12) and significant (8.39) impact on government expenditure at 5% level of significance (t=8.39>1.96). The study thus concluded that tax revenue and tax reforms significantly affect the Nigerian economy with the direction of causation running from government revenue to government expenditure, supporting the revenue-spend or tax-spend hypothesis.  It was recommended while seeking to increase its revenue base via tax should also increase their expenditure profile to create a balance with the tax revenue and every other tax reform should be geared towards this balance.

The Impact of Fiscal Policy on Economic Activity over the Business Cycle: An Empirical Investigation in the Case of Algeria

2019 ◽  
Vol 15 (3) ◽  
Author(s):  
Abderrahim Chibi ◽  
Sidi Mohamed Chekouri ◽  
Mohamed Benbouziane
Keyword(s):  
Fiscal Policy ◽  
Business Cycle ◽  
Government Spending ◽  
Economic Recession ◽  
Policy Decision ◽  
Vector Autoregressive ◽  
Asymmetric Effects ◽  
The Business Cycle ◽  
The Right ◽  
The Impact

Abstract In this paper, we aim to analyze whether the effect of fiscal policy on economic growth in Algeria differs throughout the business cycle. To tackle this question, we use a Markov Switching Vector Autoregressive (MSVAR) framework. We find evidence of asymmetric effects of fiscal policy through regimes, defined by the state of the business cycle (recession and boom). The results show small positive government spending and revenue multipliers in the short term in both regimes. Most importantly, fiscal policy shocks have a stronger impact in times of economic recession than in times of expansion, which confirm the hypothesis of asymmetric effects. However, the impact of government spending is stronger than the impact of public revenue during recession periods. In addition, fiscal policy decision-makers interact with Anti-Keynesian view (pro-cyclical). Our results imply that there is something to gain by using the "right instrument" at the "right time".

Taxation and Inequality in Uganda, 1900–1964

1978 ◽  
Vol 38 (2) ◽  
pp. 418-438 ◽  
Author(s):  
Vali Jamal
Keyword(s):  
Fiscal Policy ◽  
Economic History ◽  
Government Expenditure ◽  
Major Effect ◽  
Tax Revenue ◽  
Government Revenue ◽  
Systematic Analysis ◽  
History Of ◽  
Heavy Burden ◽  
Distribution Of Income

Amuch neglected topic in the economic history of Uganda is the contribution of fiscal policy to the inequality of income. While generalizations have been made about the heavy burden of taxation on Uganda's Africans and the bias in the distribution of government expenditure, no systematic analysis of these issues has been undertaken. It is my objective to rectify this shortcoming, and to provide estimates of the incidence of taxation on different races and sectors of the economy at different periods. This study should be of parallel interest to my earlier article, demonstrating the extent of inequality in Uganda, since it shows that the government's tax policy had a major effect on the distribution of income in the country. The present paper focuses particularly on the farmers, who have always been at the bottom of the distribution ladder, and attempts to answer the following questions. 1.) What were the major sources of tax revenue in Uganda, and what proportion of the revenue was derived from the farmers? 2.) What was the farmers' rate of taxation compared to that of other sections of the population? 3.) How was expenditure out of government revenue distributed?

scholarly journals ZAKAT SEBAGAI PENGURANG PAJAK DAN PENGARUHNYA TERHADAP PENERIMAAN PAJAK DI SEMENANJUNG MALAYSIA

INFERENSI ◽  
2013 ◽  
Vol 7 (1) ◽  
pp. 1 ◽  
Author(s):  
Eko Suprayitno ◽  
Radiah Abdul Kader ◽  
Azhar Harun
Keyword(s):  
Fiscal Policy ◽  
Panel Data ◽  
Income Tax ◽  
Islamic Law ◽  
Fixed Effect Model ◽  
Tax Revenue ◽  
Policy Tool ◽  
Effect Model ◽  
Tax Payers

This paper attempts to examine the role of zakat administration policy in Malaysia and its impact on the tax revenue in Malaysia Peninsula. Zakat administration issues pertaining to Islamic law but traditions remain under the jurisdiction of states. The practice of zakat is based on the Shariah while the taxation practice is based on the Malaysian Income Tax Act, established in 1967. Zakat is used as a fiscal policy tool whereby income tax payers were given 100 per cent rebates on zakat that they paid. The study uses panel data of states in Malaysia Peninsula and the analysis is done by using the fixed effect model. The study finds that zakat has a positif impact and significant on tax revenue.

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