scholarly journals Calculation of optimal tax rate of water resources and analysis of social welfare based on CGE model: a case study in Hebei Province, China

Water Policy ◽  
2020 ◽  
Author(s):  
Gui-liang Tian ◽  
Zheng Wu ◽  
Yu-can Hu
Keyword(s):  
Water Resources ◽  
Social Welfare ◽  
Computable General Equilibrium ◽  
Hebei Province ◽  
Utilization Efficiency ◽  
Cge Model ◽  
Tax Rate ◽  
Optimal Tax ◽  
Water Resources Protection ◽  
The Impact

Abstract The determination of the optimal tax rate of water resources is one of the core as well as the key economic and technological issue in the ‘fee to tax’ work of water resources in China. Therefore, based on the introduction of the computable general equilibrium (CGE) model of water resources tax, using production parameters and consumption parameters of Hebei province in 2008–2017, the optimal tax rate of water resources is simulated and calculated, and the impact of the optimal tax rate on social welfare is analyzed. The results show that the reference of the best water resources tax rate in Hebei Province is 18%, and taxation on water resources effectively promotes the water use structure and water resources utilization efficiency in Hebei, which is beneficial to its water resources protection. The effective calculation of the optimal tax rate of water resources tax in Hebei Province proves the effectiveness of the CGE model in the formulation of water resources tax rate, which provides an important reference for the nationwide popularization of water resources ‘fee to tax reform’ in China and the formulation of water resources tax rate in other regions.

scholarly journals DAMPAK PEMBATASAN IMPOR HORTIKULTURA TERHADAP AKTIVITAS PEREKONOMIAN, TINGKAT HARGA DAN KESEJAHTERAAN

2014 ◽  
Vol 16 (1) ◽  
pp. 21-41
Author(s):  
Wisnu Winardi
Keyword(s):  
Social Welfare ◽  
Computable General Equilibrium ◽  
Policy Instrument ◽  
Cge Model ◽  
Economic Activities ◽  
Redistribution Policy ◽  
Factor Income ◽  
Current Value ◽  
Horticultural Products ◽  
The Impact

This paper analyzes the impact of entry ports reduction on horticultural production on the economic activities, prices and also toward social welfare by using Computable General Equilibrium (CGE) model. The simulation shows higher import restriction on horticultural products will not only increase the factor income (at current value), but will also increase the composite prices. The higher effect of the latter leads to social welfare reduction, but on the other hand favors the agriculture household types. This finding shows import restriction on horticulture product serves as income redistribution policy instrument. With regard to this, the monetary authority should take the issue into account, especially in order to anticipate the effect of composite prices increase, which could lead to the need of extra efforts in managing price stability. Keywords: import reduction; prices, inflation, CGE; social welfare; income distribution.JEL Classification: E25, E27

scholarly journals Malaysian corporate tax rate and revenue: the application of Ibn Khaldun tax theory

2018 ◽  
Vol 10 (2) ◽  
pp. 251-262
Author(s):  
Hairul Azlan Annuar ◽  
Khadijah Isa ◽  
Salihu Aramide Ibrahim ◽  
Sakiru Adsebola Solarin
Keyword(s):  
Cash Flow ◽  
Positive Impact ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Gradual Reduction ◽  
Content Type ◽  
Ibn Khaldun ◽  
Tax Rate ◽  
Optimal Tax ◽  
The Impact

Purpose The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun, depicted as the Laffer curve. Design/methodology/approach The paper analyses time series data for the period 1996 to 2014 using the autoregressive distributed lag (ARDL) approach. Findings The paper finds that the corporate tax rate has a dual effect on corporate tax revenue over the study period. It shows an inverted U-shape relationship between the corporate tax rate and corporate tax revenue and reveals that the optimal tax rate is 25.5156 per cent. Inferentially, a positive relationship exists between the two variables prior to the optimal tax rate, and a negative relationship prevails afterwards. A further test of causality shows a long-run unidirectional causality between corporate tax rate and corporate tax revenue. Research limitations/implications First, it should be noted that the policy was not implemented in isolation. Several other tax incentives were given to corporate tax payers, and therefore, such incentives should be controlled for to have a more insightful evaluation of the policy. Second and most important, there is a need to investigate whether the increased cash flow available to firms as a result of the reduction in the corporate tax rate adds value to firms. It is also necessary to investigate whether firms’ stakeholders benefited from the increased cash flow or was there managerial diversion of firms’ resources. Practical implications The policy of gradual reduction of the corporate tax rate in Malaysia is suspected to have a positive impact on the productivity of Malaysian companies, which has contributed to an increase in corporate tax revenue. It also has a positive impact on the economic growth of the country. It means that the lower corporate tax rate has actually reduced the cost of doing business in the country. Originality/value The benefit of increased corporate tax revenue needs to be investigated empirically for insightful policy evaluation. In Malaysia, however, such investigation is close to non-existent to the best knowledge of the researchers. Thus, the present study aims at investigating the impact of the policy of gradual reduction of the corporate tax rate on corporate tax revenue over an 18-year period from 1996 to 2014.

scholarly journals DAMPAK KERJA SAMA PERDAGANGAN INDONESIA DENGAN EURASIAN ECONOMIC UNION (EAEU) TERHADAP PEREKONOMIAN INDONESIA

2018 ◽  
Vol 12 (2) ◽  
pp. 161-180
Author(s):  
Deky Paryadi ◽  
Aziza Rahmaniar Salam
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Cge Model ◽  
Eurasian Economic Union ◽  
Comparative Advantages ◽  
Vegetable Foodstuffs ◽  
Economic Union ◽  
The Impact ◽  
Eurasian Region ◽  
Elimination Scheme

 Abstrak Kawasan Eurasia merupakan wilayah yang penting secara geopolitik dan geostrategi bagi perdagangan Indonesia. Melihat potensi yang dimiliki oleh negara-negara yang tergabung dalam Eurasian Economic Union (EAEU), Indonesia diharapkan dapat memanfaatkan peluang yang terbuka. Penelitian ini bertujuan untuk mengetahui potensi daya saing komoditas serta dampak kerja sama perdagangan Indonesia-EAEU. Metode analisis yang digunakan adalah Trade Complementary Index (TCI), Revealed Symetric Comparative Advantages (RSCA) dan Computable General Equilibrium (CGE) model dengan data dasar GTAP versi 9 menggunakan enam simulasi. Berdasarkan analisis TCI, tingkat kesesuaian ekspor EAEU terhadap struktur impor Indonesia lebih tinggi dibandingkan ekspor Indonesia terhadap struktur impor EAEU. Dengan melihat dampak kerja sama perdagangan Indonesia-EAEU terhadap makroekonomi Indonesia, penurunan tarif bea masuk sebesar 50% untuk seluruh produk Indonesia dan EAEU merupakan alternatif kebijakan terbaik. Indonesia perlu menjajaki kemungkinan kerja sama dengan EAEU dengan pendekatan berupa eliminasi 50% pada seluruh pos tarif secara bertahap. Selain itu, disarankan Indonesia fokus pada komoditas yang memiliki daya saing di pasar EAEU yaitu sektor animal; vegetable; foodstuffs; plastics/ rubber; raw hides; woods; textile; stone/glass; machinery; dan transportation.AbstractThe Eurasian region is an important area for Indonesia in term of geopolitic and geostrategy. Due to the economic potential of EAEU countries, Indonesia must take advantage of it. This study aims to determine the potential competitiveness of commodities and the impact of trade cooperation between Indonesia-EAEU. Methods used in this study were Trade Complementary Index (TCI), Revealed Symetric Comparative Advantages (RSCA) and Computable General Equilibrium (CGE) model utilizing basic data of GTAP version 9 of six simulations. By using TCI method it was found that the comformity level of EAEU's export to Indonesia's import structure is higher than Indonesia's exports to the EAEU import structure. Looking at the impact of Indonesia-EAEU trade cooperation on Indonesia’s economy, tariff reduction of 50% for all Indonesian products and EAEU is the best policy alternative for Indonesia. Therefore, It is a must to Indonesia to explore the possibility of cooperation with EAEU with a 50% elimination scheme gradually to all tariff lines. Indonesia should also focus on commodities which have competitiveness in EAEU market i.e. animal; vegetable; foodstuffs; plastics/rubber; raw hides; woods; textile; stone/glass; machinery; and transportation.

Can the Post-COVID FDI Boost the Indian Economy?

2022 ◽  
pp. 097226292110662
Author(s):  
Isha Jaswal ◽  
Badri Narayanan G ◽  
Shanu Jain
Keyword(s):  
Computable General Equilibrium ◽  
Motor Vehicle ◽  
Trade Policies ◽  
Cge Model ◽  
Foreign Direct Investments ◽  
Policy Reforms ◽  
Fdi Inflows ◽  
Area Of Interest ◽  
Potential Impact ◽  
The Impact

Ever since the liberation of trade policies in India, Foreign Direct Investments (FDI) has been crucial in the growth of the economy, both at the macro as well as sector level. The association between FDI and economic growth is an area of interest globally. The investment decisions are affected by several national and international events that add to the volatility of the number of inflows. COVID-19 pandemic severely impacted the intensity of FDI inflows. But the strong resilience by our government manifested in crucial policy reforms and proactive decision-making minimized the impact. This article examines the potential impact of FDI on crucial macroeconomic variables using the Computable General Equilibrium (CGE) Model. Introducing the policy shock of $90 billion into the model, an increase of 5.68% per annum in GDP is estimated. Findings indicate that the impact of FDI shall be favourable to a large number of sectors mainly metals, construction, motor vehicle, computers, and electronics in terms of increased output, exports, and employment opportunities. The study offers logical implications for the policymakers to continue strengthening their moves to attract FDI.

scholarly journals THE IMPORT RESTRICTION OF HORTICULTURAL PRODUCT, DOMESTIC ACTIVITIES, PRICE LEVEL, AND THE WELFARE

2014 ◽  
Vol 16 (1) ◽  
pp. 19-38
Author(s):  
Wisnu Winardi
Keyword(s):  
Social Welfare ◽  
Computable General Equilibrium ◽  
Price Level ◽  
Policy Instrument ◽  
Economic Activities ◽  
Redistribution Policy ◽  
Factor Income ◽  
Current Value ◽  
Horticultural Products ◽  
The Impact

This paper analyzes the impact of entry ports reduction on horticultural production on the economic activities, prices and also toward social welfare by using Computable General Equilibrium (CGE) model. The simulation shows higher import restriction on horticultural products will not only increase the factor income (at current value), but will also increase the composite prices. The higher effect of the latter leads to social welfare reduction, but on the other hand favors the agriculture household types. This finding shows import restriction on horticulture product serves as income redistribution policy instrument. With regard to this, the monetary authority should take the issue into account, especially in order to anticipate the effect of composite prices increase, which could lead to the need of extra efforts in managing price stability. Keywords: import reduction; prices, inflation, CGE; social welfare; income distribution.JEL Classification: E25, E27

scholarly journals EFFECTS OF INTEGRATING DIRECT CASH AID INTO FUEL SUBSIDY REMOVAL IN THE DOMESTIC COMMODITY MARKET IN MALAYSIA USING COMPUTABLE GENERAL EQUILIBRIUM (CGE) MODEL

2019 ◽  
Author(s):  
Loo Sze Ying ◽  
Mukaramah Harun
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Complete Removal ◽  
Cge Model ◽  
Sudden Increase ◽  
Consumer Expenditure ◽  
Fuel Prices ◽  
Consumer Prices ◽  
Future Economic Development ◽  
The Impact

Direct cash aid has been introduced to protect the poor from the impact of rising fuel prices in efforts to remove subsidies in Malaysia. Thus, this paper is aimed at evaluating the changes in prices and quantities of consumer commodities produced by 17 sectors in response to the integration of direct cash aid into fuel subsidy removal. Specifically, the direct cash aid was a reallocation of saved resources through the complete removal of fuel subsidy. This study was carried out using the Lofgren-based computable general equilibrium (CGE) model, by simulating the before and after imposition of fiscal integration. With the withdrawal of government fuel subsidy, the findings showed that recipients of the cash aid tended to spend on basic necessities such as food and beverages, and petrol (for individual vehicle consumption). Nonetheless, the sudden increase in consumer expenditure led to higher consumer prices as current supplies was unable to catch up with increase in demand. Thus, it is advisable to have other effective, concurrent development programs to stimulate future economic development. Keywords:  Fuel subsidy removal, Direct cash aid, Computable general equilibrium (CGE) model.

scholarly journals Research on the impact of environmental regulation on water resources utilization efficiency in China based on SYS-GMM model

2021 ◽  
Author(s):  
X. B. Wang ◽  
Z. L. Wang
Keyword(s):  
Water Resources ◽  
Environmental Regulation ◽  
Resource Utilization ◽  
Water Resource ◽  
Negative Correlation ◽  
Utilization Efficiency ◽  
Water Resource Utilization ◽  
The Impact ◽  
Resource Utilization Efficiency ◽  
Water Resources Utilization

Abstract The paper uses the super-efficiency DEA (Data Envelopment Analysis) model to measure the water resources utilization efficiency of 30 provinces in China, and then uses the system GMM (Generalized Method of Moments) model to analyze the impact of environmental regulations on China's regional water resources utilization efficiency. Conclusions as follows: (1) The overall water utilization efficiency is low, and the regions are very unbalanced. The more efficient areas are concentrated in the east, and the less efficient areas are in the west; (2)There is a ‘U’-shaped relationship between the intensity of environmental regulation and water resource utilization efficiency, that is, weaker environmental regulation intensity is not conducive to the improvement of water resource utilization efficiency, but when the intensity of environmental regulation crosses the ‘inflection point’, it can promote the improvement of water resources utilization efficiency; (3) The level of economic development has a very significant positive effect on water resources utilization efficiency, and the coefficient of scientific and technological progress is positive, but the impact of scientific and technological input on water resources utilization efficiency is limited and not significant; industrial structure and water resource utilization efficiency shows a negative correlation; water use structure and water resources efficiency show a negative correlation.

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