scholarly journals IMPROVING PERFORMANCE OF VAT SYSTEM IN DEVELOPING EU COUNTRIES: ESTIMATING THE DETERMINANTS OF THE RATIO C-EFFICIENCY IN THE PERIOD 1997-2017

2019 ◽  
pp. 239
Author(s):  
Marina Đorđević ◽  
Jadranka Đurović Todorović ◽  
Milica Ristić
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Developing Countries ◽  
Collection Efficiency ◽  
Value Added ◽  
Household Consumption ◽  
Economic Growth Rate ◽  
Eu Countries ◽  
The Impact ◽  
The Eu

Indirect taxes have a significant place in developing EU countries’ tax systems. The article sums up scholars of different scientists, dealing with the impact of VAT efficiency determinants. The purpose of this study is to investigate the determinants of VAT collection efficiency in the EU developing countries. The study relies on relevant data in transparent international statistical databases, covering the period from 1997 to 2017. The main research question in this paper is: does rise in value added tax rate negatively affect VAT collection efficiency in the EU developing countries. Accordingly, one of the independent variables included in the survey is standard annual VAT rate. In addition to standard VAT rate, as a determinant of VAT collection efficiency, we analyze: economic growth rate, export of goods, export of services, wages and salaries, household consumption. The hypotheses set are analyzed using correlation and regression analyses. Empirical results show a positive effect of economic growth rate, export of goods, and the negative effect of two variables: standard VAT rate and household consumption. The two observed variables, export of services and wages and salaries, do not show a statistically significant effect. The results obtained using appropriate statistical tools serve as guidelines to macroeconomic policy makers to generate higher tax revenues from VAT. By analyzing the C-efficiency determinant, we design a relevant development strategy approach for economically underdeveloped EU countries.

scholarly journals Factors of the Value Added Tax Collection Efficiency in the Republic of Serbia

2019 ◽  
Vol 57 (1) ◽  
pp. 35-49
Author(s):  
Milica Ristić ◽  
Jadranka Đurović Todorović ◽  
Marina Đorđević
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Developing Countries ◽  
Collection Efficiency ◽  
Value Added ◽  
Strong Positive Correlation ◽  
Value Added Tax ◽  
Economic Growth Rate ◽  
Standard Rate ◽  
The Impact

AbstractThe policy led by a large number of developing countries, with the aim of increasing indirect taxes, has opened the issue of Value Added Tax (VAT) performance. Reforms of tax systems of transition countries generally involve an increase in standard rates in order to increase VAT, which is the main source of public revenues. In such a way, developing countries determine the VAT performance and the amount of revenue that could be collected by indirect taxation. Theoretical analyses of standard rates and other factors that have reflections on the VAT collection efficiency explicitly prove that there are different ways to improve the efficiency of VAT collection, and exclude an increase in the standard rate. An increase in the standard rate provides a balance of negative effects, which can be blurred by recorded tax revenues. The subject of this paper is an analysis of the factors that influence the efficiency of VAT collection in Serbia. The main objective of the paper is to examine the impact of the change in the standard rate, which is the result of the reforms carried out in 2012, on the performance of VAT. Regression analysis was applied to the data series for the period 2005-2016.The results show that the change in the standard rate had a statistically significant negative impact on VAT performance. Our analysis also indicates that the economic growth rate has reflections on VAT collection. A strong positive correlation between the economic growth rate and VAT performance was calculated.

scholarly journals The impact of health care financing on the economic growth: EU countries analysis

2020 ◽  
Vol 1 (2) ◽  
pp. 24-32
Author(s):  
Anastasiia Samoilikova ◽  
Rosen Kunev
Keyword(s):  
Economic Growth ◽  
Health Care ◽  
Software Package ◽  
Positive Impact ◽  
Statistical Significance ◽  
Health Care Financing ◽  
Eu Countries ◽  
Per Capita ◽  
The Impact ◽  
The Eu

This article generalized modern tendencies and actual peculiarities of health care financing. The key aim of the research is to investigate the dynamics of health care financing as a factor of economic growth based on EU countries analysis. Systematization information sources connected with health care financing and its structure indicate that the EU countries analysis of dynamics of health care financing and its impact on economic growth was conducted fragmentary. This issue is still actual both for scholars and policymakers, especially for Ukraine, based on European trends. Investigation in the article is made according to the following stages: 1) introduction and relevance grounding; 2) literary review and identifying the necessity of research in this scientific area; 3) describing methodology, research methods, and current hypothesis; 4) characteristic of research results and confirming the hypothesis of the positive impact of the health care financing on economic growth; 5) making conclusions. Methodological tools of the research methods were structural and comparative analysis, logical generalization, and scientific abstraction. The methods of cross-country statistical and analytical analysis using the Excel 2010 software package for the sample from 14 EU countries for 2009-2018 (limited number of countries and limited data in 2018 relate to the data availability on open website of the EU statistical office) were applied to analyse the structure of health care financing, in particular financing schemes, main providers, and health care functions. The top countries in health care financing were identified. The methods of empirical analysis using the STATA software package for this data sample were used to confirm the hypothesis about the positive impact of the health care financing on economic growth – the GDP per capita. The nature of the analysed indices distribution was estimated based on results of Shapiro-Wilk test. So, Pearson or Spearman correlation coefficient was chosen. The statistical significance and strength of the relationship between the indicators of total expenditure for health care, and in particular government financing and compulsory contributory health care financing, voluntary health care financing, and household out-of-pocket payment for health care and the change of GDP per capita were assessed through a correlation analysis. The time lags of achievement the most statistical significance by this relationship was also identified. The results of the research show that the impact of health care financing on the change of economic growth is very high in 12 from 14 investigated EU countries (with lags of 1–3 years) and high in 2 from 14 countries (with a lag of 1 year). The character of this relationship for the most countries (9 from 14 countries) is direct (positive), and for 5 countries it is inverse (negative). The results of the research will be useful during future fundamental and practical research connected with health care financing and its modelling, for scholars and government officials to reform the health care system and its financial mechanism.

scholarly journals The Evolution of Economic Activity in the Rural Area of Region 2 South - East

2021 ◽  
Vol 95 ◽  
pp. 01007
Author(s):  
Daniela – Lavinia Balasan ◽  
Dragoş Horia Buhociu
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
Economic Activity ◽  
Labour Force ◽  
Standard Of Living ◽  
Economic Growth Rate ◽  
Current State ◽  
Per Capita ◽  
The Impact

When we talk about economic development, we can refer to improve the standard of living and the prosperity of the population. This is due by increasing per capita income. In order to analyze economic activity, severe indicators must be studied, namely productivity, economic growth rate, labour force share, gross domestic product. In order to carry out as accurate an analysis as possible, it is required to discover the bottlenecks and problems that Region 2 South East makes and to develop a set of reservations and indications leading to the reduction and, why not, the removal of negative aspects. The main purpose of this work is to achieve a strategic plan by studying the current state and the impact of the economic system in recent times in all its forms, with a view to the development of the countryside of Region 2 South – East. I set out to create a website based on the advice of small rural entrepreneurs that evolves gathering information in realistically identifying all the strengths and concentrating them in the region’s potential innovation.

scholarly journals Factors affecting stock market index volatility: Empirical study

2021 ◽  
Vol 10 (3) ◽  
pp. 169-176
Author(s):  
Mohammed Ali Al-Rimawi ◽  
Thair Adnan Kaddumi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Foreign Investment ◽  
Inflation Rate ◽  
Market Price ◽  
Economic Growth Rate ◽  
Macroeconomic Variables ◽  
The Impact

How is stock market price volatility affected, and what is the nature of the impact that macroeconomic variables do on the stock market price direction? The main objective of this study is to investigate the impact of some selected macroeconomic variables (inflation rate (INR), interest rate (IR), economic growth rate (EGR), and foreign investment (FI)) on Amman Stock Exchange (ASE) fluctuation for the period 1999–2018. The information is based on the annual data published by industrial companies listed at ASE. The study adopted a descriptive-analytical approach, also simple and multiple linear regression analysis was employed for the mentioned purpose (Nurfadilah & Samidi, 2017). The results revealed that there is no statistically significant impact of INR, IR, EGR, and FI collectively on ASE performance (Niewińska, 2020). Individually, the results indicated that there is a statistically significant impact of all variables (INR, IR, EGR, and FI) on ASE performance. Additionally, the results concluded that foreign investment, portrayed the highest impact factor on ASE performance, followed by a change in average interest rate, then inflation rate, and the least impact attributes to the economic growth rate. Finally, the research recommends that Jordanian banks should reduce the lending interest rate to enhance investment in securities and improve economic growth rate, also Jordanian authorities should encourage foreign direct and indirect investment and make more efforts to attract more foreign investment, either in the form of tax incentives or by extending finance at low-interest rates.

The Impact of Defense Investment on Economic Growth in the Perspective of Time Series

2014 ◽  
Vol 5 (4) ◽  
pp. 44-58
Author(s):  
Bin Pan ◽  
Shih-Yung Wei ◽  
Xuanhua Xu ◽  
Wei-Chiang Hong
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Private Investment ◽  
Investment Risk ◽  
Demand And Supply ◽  
Economic Growth Rate ◽  
Proposed Model ◽  
Endogenous Growth Model ◽  
The Impact ◽  
The Relationship

By considering the demand and supply effects of defense investment and the uncertainty of the stochastic process of the production and defense investment, this study proposes a stochastic endogenous growth model to explore the impact of defense investment on economic growth. The results suggest that the relationship between defense investment and economic growth rate is nonlinear and obtains the optimal percentage of defense investment to maximize economic growth. Moreover, the impact of defense investment volatility on economic growth rate is subject to production and defense investment interference term's covariance and representative private investment risk preference. Finally, the empirical data are used to illustrate the applicability of the proposed model.

scholarly journals Energy Price and Energy Efficiency in China: A Linear and Nonlinear Empirical Investigation

Energies ◽  
2020 ◽  
Vol 13 (16) ◽  
pp. 4068 ◽  
Author(s):  
Peng Hou ◽  
Yilin Li ◽  
Yong Tan ◽  
Yuanjie Hou
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Energy Efficiency ◽  
Economic Development ◽  
Energy Price ◽  
Effect Analysis ◽  
Economic Growth Rate ◽  
Development Level ◽  
Linear And Nonlinear ◽  
The Impact

The empirical conclusions regarding the relationship between energy price and energy efficiency are relatively mixed. This paper systematically examines the influence of energy price on energy efficiency in China based on data from 30 provinces between 2003 and 2017, using linear and nonlinear effect analysis. We found that the impact of energy price on energy efficiency in China was positive in general. However, there existed heterogeneous effects of energy price on energy efficiency in various regions, and the effect differed with differences in energy efficiency levels based on the panel quantile regression analysis. Finally, the nonlinear effect analysis based on the panel threshold model indicated that the effect of energy price on energy efficiency increased with the rise of the environmental regulation level and economic growth rate, while it decreased with the ascent of the degree of energy price distortion and economic development level. In particular, when the value of a region’s economic development level and economic growth rate was within a certain range, the impact was not statistically significant. Overall, these findings contribute to a deeper understanding regarding the effect of energy price on energy efficiency in China.

scholarly journals IFRS Adoption and Enforcement as Antecedents of Economic Growth

2014 ◽  
Vol 4 (1) ◽  
pp. 1 ◽  
Author(s):  
Syed Kashif Raza Zaidi ◽  
Esperanza Huerta
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Partial Support ◽  
Positive Interaction ◽  
Economic Growth Rate ◽  
Ifrs Adoption ◽  
Statistical Procedures ◽  
The Impact

This paper assesses the impact of IFRS adoption on the economic growth of adopting countries taking into consideration the level of enforcement of the adopting countries. We hypothesize that the adoption of IFRS increases the economic growth of the adopting countries. This effect is to be moderated by the level of enforcement. That is, we hypothesize a positive interaction between enforcement level and IFRS adoption on the economic growth rate of a country. Using several statistical procedures and models to estimate regression, we find partial support for our hypotheses.

South Korea’s Economy in 2016 Overshadowed by Chaebols’ Crisis

2017 ◽  
Vol 09 (01) ◽  
pp. 127-138
Author(s):  
Min-Hua CHIANG
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Domestic Economy ◽  
Domestic Consumption ◽  
Economic Growth Rate ◽  
The Future ◽  
The Impact ◽  
Political Scandal

South Korea’s economy continued to be impacted by its waning exports in 2016. With moderate expansion in domestic consumption and services, economic growth rate rose to 2.7% in 2016, 0.1% more than in 2015. The impact of President Park Geun-hye’s political scandal on the domestic economy has been constrained so far. It remains to be seen whether strong opposition from society to some chaebols’ involvement in Park-Choi corruption cases will lead to weaker government-chaebols ties in developing the economy in the future.

scholarly journals C EFFICIENCY RATIO AS A MEASURE OF VAT EFFICIENCY IN EU DEVELOPING COUNTRIES AND SERBIA

2021 ◽  
Vol 13 (26) ◽  
Author(s):  
Marina Đorđević ◽  
Jadranka Đurović-Todorović ◽  
Milica Ristić
Keyword(s):  
Developing Countries ◽  
Collection Efficiency ◽  
Value Added ◽  
Economic Transformation ◽  
The European Union ◽  
Efficiency Ratio ◽  
Negative Effects ◽  
Standard Rate ◽  
The Impact ◽  
Public Revenues

The policy led by a large number of developing countries, with the aim of increasing indirect taxes, has opened the issue of Value Added Tax (VAT) efficiency. Reforms of tax systems of developing countries generally involve an increase in standard rates in order to increase VAT, which is the main source of public revenues. In such a way, developing countries determine the VAT efficiency and the amount of revenue that could be collected by indirect taxation. The article sums up works of different scientists, dealing with the impact of determinants on VAT efficiency. The subject of this paper is an analysis of the factors that influence the C efficiency ratio. The main objective of the paper is to analize the impact of the change in the standard rate on the ratio. Theoretical analyses of standard rates and other factors that have reflections on the VAT collection efficiency explicitly prove that there are different ways to improve the efficiency of VAT collection, and exclude an increase in the standard rate. An increase in the standard rate provides a balance of negative effects, which can be blurred by recorded tax revenues. We focused on the countries of the European Union: Bulgaria, Czech Republic, Estonia, Greece, Croatia, Latvia, Hungary, Poland, Romania, Slovakia, Slovenia, Lithuania during the 2000-2016 period. These countries experienced significant changes in government during economic transformation, and where VAT is the main source of public revenues. The last section analize an increse in VAT rate and C efficiency ratio in Serbia and conteins conclusions. The paper indicates the imperfection of inadequately defined VAT rates on economic growth and development in analized countries. Based on analyses we can conclude that the increase in the standard rate have negative reflections on the VAT efficiency, and that it was one of the factors of the continuous decline in C-efficiency.

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