Alternative Specification and Estimation of Tax Revenue-Gross Domestic Product Relationship

2016 ◽  
Vol 4 (3) ◽  
pp. 134-141
Author(s):  
Richardson Kojo Edeme ◽  
Chigozie Nelson Nkalu ◽  
Benedict Azu ◽  
Sylvernus Chinedu Nwachukwu
Keyword(s):  
Gross Domestic Product ◽  
Domestic Product ◽  
Tax Revenue ◽  
Alternative Specification

scholarly journals Estimating the Impact of Taxes on the Economic Growth in the United States

2017 ◽  
Vol 55 (4) ◽  
pp. 481-499 ◽  
Author(s):  
Branimir Kalaš ◽  
Vera Mirović ◽  
Jelena Andrašić
Keyword(s):  
Economic Growth ◽  
Social Security ◽  
Gross Domestic Product ◽  
Income Tax ◽  
Personal Income ◽  
Domestic Product ◽  
Tax Revenue ◽  
Personal Income Tax ◽  
Gross Domestic Product Growth ◽  
Social Security Contributions

AbstractIn a research paper, the authors provide an empirical approach to taxes and economic growth in the United States in the period 1996-2016. The basic goal is to explore how taxes affect economic growth. The subject of the research is measuring the effects of tax revenue growth and tax form as a personal income tax, corporate income tax and social security contributions on gross domestic product as a proxy for economic growth. Methodology framework includes several tests to clear the potential problem of heteroscedasticity, autocorrelation, multicollinearity and specification of the model. Based on diagnostic tests, a regression model is adequately created where fundamental econometric procedures are applied. Correlation matrix reflects a strong and positive relationship between tax revenue growth and corporate income tax on the one side and gross domestic product growth, on the another side. Also, personal income tax and social security contributions are weakly related to gross domestic product growth. The model shows a significant effect of tax revenue growth and social security contributions, while personal income tax and corporate income tax do not have a significant impact on gross domestic product growth. Interestingly, personal income tax as the main tax form in the tax structure of the United States has no significant impact on economic growth compared to social security contributions which percentage share is lesser.

scholarly journals Revenue Productivity of the Tax System in Namibia: Tax Buoyancy Estimation Approach

2019 ◽  
Vol 11 (2(J)) ◽  
pp. 112-119
Author(s):  
A Shikongo ◽  
A Shikongo ◽  
O Kakujaha-Matundu ◽  
T Kaulihowa
Keyword(s):  
Gross Domestic Product ◽  
National Income ◽  
Domestic Product ◽  
Tax Revenue ◽  
Economic Activities ◽  
Tax System ◽  
Correction Model ◽  
Tax Rate ◽  
Revenue Collection ◽  
The Government

Buoyancy refers to how tax revenue responds to a gross domestic product without correcting for discretionary alterations in the tax system. The paper assessed the buoyancy of Namibia’s overall tax system in an attempt to measure the response of the tax system in entirety because of fluctuations in the national income and/or the deliberate act by the government to increase tax rate, reviewed tax code and tax machinery etc. The study employed the Engle-Granger approach to the error correction model to estimate the tax buoyancy for the period 2001 to 2014. The empirical findings from the study revealed that overall the Namibian tax system is income inelastic and not buoyant. This is confirmed by a low and negative value of 0.036 which is less than unit. Thus, the economy is not generating sufficient revenue both through discretionary tax measure and through the expansion in the economic activities. Therefore, the government need to introduce measures that will allow for more tax revenue collection to have a stable revenue base. This also means the government need to keep track of tax mobilization with growth in the gross domestic product as well as to ascertain taxes that are productive.

scholarly journals Implications of Tax Revenue on Economy Growth in Nigeria

2019 ◽  
pp. 1-16
Keyword(s):  
Gross Domestic Product ◽  
Secondary Data ◽  
Domestic Product ◽  
Tax Revenue ◽  
Weak Correlation ◽  
Economy Growth ◽  
Specific Objective ◽  
Independent Variable ◽  
Social Amenities ◽  
The Relationship

The paper examined the implications of tax revenue on economy growth in Nigeria. The specific objective of this study is to examine the relationship between tax revenue and gross domestic product in Nigeria. Simple Regression was used to achieve the objective of this study. Secondary data will be sourced from International Monetary Fund’s Government Finance Statistics. It was revealed that there was a weak correlation between dependent and independent variable. It was also discovered that there was no significant relationship between tax revenue and gross domestic product in Nigeria. The study therefore recommends that Government should formulate policies that will minimize the volume of tax leakages in order to increase total tax revenue that will contribute positively to economic growth in Nigeria. The study also recommends that Government should always make sure that tax revenue is spent on social amenities and welfares of the Nigerian citizens.

scholarly journals ANALYSIS OF RELATIONSHIP AMONG FACTORS THAT INFLUENCE ATTITUDE TAX PAYER ON TAX PAYER COMPLIANCE

2013 ◽  
Vol 7 (1) ◽  
pp. 22
Author(s):  
Norbertus Purnomolastu
Keyword(s):  
Gross Domestic Product ◽  
Compliance Rate ◽  
Domestic Product ◽  
Tax Revenue ◽  
Ratio Increase ◽  
Compliance Level

The low tax ratio as comparison between tax revenue and gross domestic product rate of Indonesia compared with other countries indicated low tax payer compliance rate on compulsion to pay tax. The tax payer compliance level is influenced by factors of tax payer attitude and law supremacy. Stronger law supremacy will influence tax payer compliance and attitude in paying tax. The tax payer attitude is influenced by factors of service, socialization and law supremacy. Law supremacy can influence tax payer compliance in direct and indirect manner that in turn influence tax payer attitude and finally his/her compliance. By identifying the extent of socialization, service and law supremacy factors influence on tax payer attitude that will influence tax payer compliance it is expected to give benefit for stakeholder where in this case is taxation general directorate. By identifying which factor that has greaterinfluence it is expected to give more priority in performing influencing activities in improving tax revenue. Tax revenue improvement is expected to be able to improve tax ratio. Tax ratio increase is indication of increased tax payer compliance in performing his duty of paying tax.

scholarly journals Are there any turning points for external debt in Malaysia? Case of adaptive neuro-fuzzy inference systems model

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Abdul Aziz Bin Karia
Keyword(s):  
Gross Domestic Product ◽  
Fuzzy Inference ◽  
Turning Points ◽  
Government Expenditure ◽  
External Debt ◽  
Domestic Product ◽  
Tax Revenue ◽  
Domestic Saving ◽  
Inference System ◽  
Neuro Fuzzy

AbstractThis paper intends to investigate whether the turning points exist between tax revenue, gross domestic product, government expenditure, and gross domestic saving towards Malaysia’s total external debt. The researcher implements the adaptive neuro-fuzzy inference system model to forecast the total external debt in Malaysia. The total external debt prediction then projects the three-dimensional surface diagrams to depict whether the turning points exist among the variables. This study’s empirical finding reveals that the turning points are noticeable between the tax revenue, gross domestic product, and gross domestic saving toward external debt in Malaysia. However, government expenditure depicts a direct relationship with external debt. This finding demonstrates that the anomaly between the theories and scholarly activities. This study also recommends that the tax revenue be collected at maximum holding the government expenditure and gross domestic product are maximum statistics to reduce Malaysia’s external debt.

scholarly journals A Performance Analysis of Nigerian Tax Objectives Actualization: Evidence of 2000 – 2012

2015 ◽  
Vol 1 (6) ◽  
pp. 88-100
Author(s):  
Ordu Promise A ◽  
Anele Clement A
Keyword(s):  
Performance Analysis ◽  
Gross Domestic Product ◽  
Final Stage ◽  
Tax Policy ◽  
Tax Incentives ◽  
Domestic Product ◽  
Tax Revenue ◽  
Revenue Generation ◽  
Tax Laws ◽  
Using Data

This paper examines the extent to which objectives set by government (Nigerian) on tax revenue generation are being achieved. In doing this, however, it critically evaluates the comprehensive tax policy – right from reforms to final stage, tax incentives and how they have or have not made the actualization of the policy easier. Furthermore, the paper also evaluates the adequacy of the relevant tax laws as well at its loopholes in the system. In addition, the revenue generated over the years is looked through. Using data of 12 years’ period (2000 -2012), the revenue generated is compared in relation to budget, actual and Gross Domestic Product (GDP) of the country. It concludes with suggestions/strategies of improvements in the system towards increasing tax revenue generated.

scholarly journals Implications of Tax Revenue on Economy Growth in Nigeria

2019 ◽  
Vol 1 (2) ◽  
pp. 1-16
Author(s):  
Samuel Olusegun James ◽  
Adewole Joseph Adeyinka ◽  
Idih Ogwu Emmanuel
Keyword(s):  
Gross Domestic Product ◽  
Secondary Data ◽  
Domestic Product ◽  
Tax Revenue ◽  
Weak Correlation ◽  
Economy Growth ◽  
Specific Objective ◽  
Independent Variable ◽  
Social Amenities ◽  
The Relationship

The paper examined the implications of tax revenue on economy growth in Nigeria. The specific objective of this study is to examine the relationship between tax revenue and gross domestic product in Nigeria. Simple Regression was used to achieve the objective of this study. Secondary data will be sourced from International Monetary Fund’s Government Finance Statistics. It was revealed that there was a weak correlation between dependent and independent variable. It was also discovered that there was no significant relationship between tax revenue and gross domestic product in Nigeria.  The study therefore recommends that Government should formulate policies that will minimize the volume of tax leakages in order to increase total tax revenue that will contribute positively to economic growth in Nigeria. The study also recommends that Government should always make sure that tax revenue is spent on social amenities and welfares of the Nigerian citizens.

scholarly journals Analysis of Elasticity and Buoyancy and Projection of Tax in Nepal

2018 ◽  
Vol 32 (1) ◽  
pp. 105-116
Author(s):  
Dil Nath Dangal
Keyword(s):  
Gross Domestic Product ◽  
Secondary Data ◽  
Domestic Product ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Tax System ◽  
Indirect Taxes ◽  
The Government ◽  
Year 2000

This study has been designed to calculate elasticity and buoyancy and projection of various taxes in Nepal from 2018 to 2020. This study is based on secondary data published by the government of Nepal covering a period between the fiscal year 2000 to 2016. The various sources of revenue as a proportion of the Gross Domestic Product (GDP) have been analyzed during this period. This study particularly deals with the analysis of elasticity and buoyancy of tax and nontax revenue. The projection of tax revenue since 2018 to 2020 has also been forecasted. The findings reveals that the overall tax system of Nepal seemed to be inelastic during study period, and direct taxes appeared smaller elasticity’s than indirect taxes and those buoyancy coefficients of major taxes became much higher than their respective elasticities.

scholarly journals THE ROLE OF TAX REVENUE AND FOREIGN DIRECT INVESTMENT IN PROMOTING ECONOMIC PROGRESS IN NIGERIA

10.26458/1932 ◽  
2019 ◽  
Vol 19 (3) ◽  
pp. 33-54
Author(s):  
Fineboy Ikechi JOSEPH ◽  
Cordelia Onyinyechi OMODERO ◽  
Manasseh Obioma OMEONU
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Positive Relationship ◽  
Domestic Product ◽  
Tax Revenue ◽  
P Value ◽  
Regression Result ◽  
The Impact

AbstractThe study examined the impact of tax revenue on economic growth of Nigeria proxied as gross domestic product (GDP) from 2000-2017). The study employed Exploratory and ex-post facto designs and secondary data sourced from Federal Inland Revenue Services (FIRS), UNCTAD, FDI/MNE database, World Bank Report, United Nations Development Programme (UNDP) reports, CBN statistical bulletin were used. Ordinary Least Squares (OLS) regression technique was adopted to test the hypotheses of the study. The result reveals that tax revenue has significant impact on GDP in Nigeria with R-squared showing that about 87% variations in GDP can be attributed to tax revenue, while the remaining 23% variations in GDP are caused by other factors not included in this model. This is further emphasized by the T-statistic p-value of 0.001 which shows that the regression result is statistically significant because it is less than 5%, level of significance adopted for this study. The result from regression analysis also revealed that there is positive relationship between foreign direct investment and Gross Domestic Product, with a p- value of + 0.000, + 0.001 < 0.05% significance level. The study concluded that tax revenue has a significant impact on GDP in Nigeria. Also there is a positive relationship between FDI and economic growth in Nigeria; therefore the more FDI increases the more economic growth. The study recommended that functional tax structures that would ensure that tax is collected from all taxable individuals, group of individuals and corporate bodies and remitted accordingly to the government without diversion should be instituted to widen the revenue base of the country. Government should liberalize the Nigerian economy the more by removing all barriers to trade such as arbitrary tariffs, import and export duties and other levies to encourage foreign investors.

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