scholarly journals The Impact of Indonesian Economic Growth on Tax Revenue Ratio, Goverment Expenditure Ratio and Macroeconomic Aspects in The Period of 1997-2016

2018 ◽  
Vol 4 (9) ◽  
Author(s):  
Rosalendro Eddy Nugroho
Keyword(s):  
Economic Growth ◽  
Tax Revenue ◽  
The Impact

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

scholarly journals Economic Growth by Means of Fiscal Decentralization: An Empirical Study for Federal Developing Countries

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402096808
Author(s):  
Imran Hanif ◽  
Sally Wallace ◽  
Pilar Gago-de-Santos
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Tax Revenue ◽  
Weak Institutions ◽  
The Impact

The impact of fiscal federalism on economic performance has largely been studied in the developed world since the seminal work of Oates. In this article, we focus on a particular set of developing countries considered to be federal (Forum of Federations), to examine how fiscal decentralization has impacted their economic growth. In this context, we study the impact of tax revenue and expenditure decentralization on economic growth in developing federations. For this purpose, a panel data of 15 developing federations from 2000 to 2015 are analyzed by using a two-step system Generalized Method of Moments (GMM) estimation method. The results show that in federal developing countries, both tax revenue and expenditure decentralization have a significant, positive impact on economic growth. What is more, our findings show that the impact of fiscal decentralization on economic growth depends upon the level of perceived corruption and on the quality of the country’s institutions. Thus, empirical evidence depicts that the positive effect of fiscal decentralization on economic growth is tempered if the country is plagued with corruption, if it has weak institutions, and/or if it suffers from political instability. By contrast, a relatively corruption-free country featuring healthy institutions and a stable political environment could take fuller advantage of the effects of fiscal decentralization to improve economic growth.

scholarly journals Taxation, government spending and economic growth: The case of Bulgaria

2021 ◽  
Vol 7 (3) ◽  
pp. 255-266
Author(s):  
G. Ganchev ◽  
◽  
I. Todorov ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Real Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Impact

The objective of this article is to estimate the impact of three fiscal instruments (direct taxes, indirect taxes, and government expenditure) on Bulgaria’s economic growth. The study employs an autoregressive distributed lag model (ARDL) and Eurostat quarterly seasonally adjusted data for the period 1999–2020. Four control variables (the shares of gross capital formation, household consumption, and exports in GDP as well as the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on Bulgaria’s real GDP growth rate. The empirical results indicate a long-run equilibrium relationship between Bulgaria’s economic growth and the independent variables in the ARDL. In the short term, Bulgaria’s real GDP growth rate is affected by its own past values and the previous values of the shares of direct tax revenue, exports, government consumption, and indirect tax revenue in GDP. In the long term, Bulgaria’s economic growth is influenced by its own previous values and the past values of the share of household consumption in GDP and the euro area’s real GDP growth rate. Fiscal instruments can be used to stabilize Bulgaria’s growth in the short run but they are neutral in the long run. The direct tax revenue, government consumption, and indirect tax revenue are highly effective and can be used as tools for invigorating and stabilizing Bulgaria’s economic growth in the short run. However, in the long term, the real GDP growth rate can be hastened only by encouraging domestic demand (final consumption expenditure of households) and promoting exports. This research cannot answer the question of whether flat income taxation stabilizes the economy or not, since it does not separate the impact of tax rate changes from the influence of tax base modifications.

scholarly journals TAX REVENUE AND ECONOMIC GROWTH NEXUS: EMPIRICAL EVIDENCE FROM THE NIGERIAN ECONOMY

2020 ◽  
Vol 4 (2) ◽  
Author(s):  
Olabode Agunbiade ◽  
Alesanmi Abraham Idebi
Keyword(s):  
Economic Growth ◽  
Decomposition Analysis ◽  
Variance Decomposition ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Tax System ◽  
Variance Decomposition Analysis ◽  
The Impact ◽  
The Relationship ◽  
Direct Tax

<p>This paper examined the relationship between tax revenue and economic growth in Nigeria over 1981–2019 period, with special focus on Companies Income Tax, Value Added Tax and Petroleum Profits Tax. The data were sourced from the National Bureau of Statistics (NBS) and the Federal Inland Revenue Service (FIRS). The study employed the Vector Error Correction Model (VECM) to establish the nature and strength of the relationship between taxation and economic growth. The Johansen test of cointegration reveals that there is at least one cointegrating equation in the long-run between the variables. Granger causality test found a causal relationship among Real GDP and the different tax components. The impulse response functions and the variance decomposition analysis uphold the findings that the impact of the shock in the indirect tax (VAT) and direct tax (CIT and PPT) on GDP growth does not die out over the specified period under consideration. Variance decomposition analysis found that the effect of the shock to the direct tax (CIT and PPT) on GDP growth tends to be low, whereas the effect of the shock to the indirect tax (VAT) on GDP growth tends to be significant to increase over the period. Therefore, this study recommended that in order to expand tax revenue, there should be a broad base tax strategy, focusing on all key areas of the tax system with measurable outcomes. Emphasis should be on simplification of the tax system and ease of implementation with priority given to quick wins and low hanging fruits, while more challenging aspects should be deferred until positive results are being recorded. The regulatory authorities charged with the responsibility of collecting tax should further be strengthened to enforce compliance by taxpayers, among other recommendations.</p><p> </p><p><strong>JEL: </strong>C1, H20, H21</p>

scholarly journals Tax revenue, expenditure, and economic growth: An analysis of long-run relationships

2017 ◽  
Vol 24 (03) ◽  
pp. 04-26
Author(s):  
Lien Nguyen Phuong ◽  
Thanh Su Dinh
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Tax Revenue ◽  
Dynamic Panel ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

Focusing on the investigation of “long-term” relationship between tax revenue, expenditure, and economic growth, this paper employs the Granger causality test and finds that the linkage between tax revenue and spending is a bi-directional causal correlation. Furthermore, applying Persyn and Westerlund’s (2008) co-integration test allows for corroboration of existence of long-run cointegration linkages among outcome of economy and the three variables. In addition, by adopting two-step system generalized method of moments (SGMM) for a dynamic panel of 82 developed and developing countries during 16-year period (2000–2015), this research demonstrates that the impact of tax revenue and spending is substantial and ambiguous, depending on different groups of economies.

The impact of the budget system on the economic growth of extractive regions

2020 ◽  
Author(s):  
Arina V. Toroshchina ◽  
◽  
Irina V. Provornaya ◽  
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Oil Production ◽  
Tax Revenue ◽  
Minimal Impact ◽  
Regional Budget ◽  
Tax Deductions ◽  
The Impact

It was found that the strongest influence is exerted by such factors as tax profitability and the balance of tax deductions. The minimal impact is exerted by the regional budget deficit. A negative relationship has been established between tax revenue and the balance of tax deductions. A weak positive relationship between the tax burden of the budget and the level of regional budgetary provision was also revealed. A positive relationship was established between the balance of tax deductions and an increase in oil production for 2011–2018, as well as a negative relationship between the first factor (tax return) and an increase in oil production for 2011–2018.

scholarly journals The Financial and Economic Implications of Underground Economy: The Nigerian Perspective

2019 ◽  
Vol 8 (2) ◽  
pp. 155-167 ◽  
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Economic Growth ◽  
Shadow Economy ◽  
Least Squares Method ◽  
Underground Economy ◽  
Ordinary Least Squares ◽  
Economic Benefits ◽  
Tax Revenue ◽  
Economic Implications ◽  
The Government ◽  
The Impact

Abstract The economic and financial effect of underground economy in all emerging countries is of tremendous concern. Sometimes due to the inputs of the sector to economic growth of nations, it is usually assumed that the government has nothing to lose, meanwhile it goes beyond the seemingly economic benefits, but provides an avenue whereby the government has to suffer financial losses through unavoidable and inherent tax evasions. This study evaluates the impact of shadow economy using the transaction approach and the MIMIC approach which helped to determine the size of the shadow economy as a percentage of GDP and the tax revenue losses suffered by the government for a period spanning from 1991 to 2018. Ordinary least squares method is used to examine the impact of tax revenue earned and lost on Nigeria’s GDP. The regression results indicate that tax revenue earned has a significant positive impact on economic growth, while the tax revenue loss has a significant negative influence on GDP. The study finds that underground economy activities do more harm to the government than good and is also detrimental to Nigeria’s economic progress. Therefore the suggestion among others is that the legal activities among them should be formalized and taxed while the unlawful ones should be exterminated.

scholarly journals Non-oil Revenue Impact on Economic Growth: Empirical Study of Saudi Arabia’s Economy

2020 ◽  
Vol 10 (4) ◽  
pp. 13
Author(s):  
Nedra Shili ◽  
Kavita Panjwani ◽  
Nedra Shili
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Public Procurement ◽  
Business Environment ◽  
Public Consultation ◽  
Domestic Product ◽  
Tax Revenue ◽  
Oil Revenue ◽  
Ease Of Doing Business ◽  
The Impact

The kingdom of Saudi Arabia saw during the year 2019 an improve in its business environment, as indicated in the World Bank Ease of Doing Business 2020 report in which the Kingdom was the best reformer, gaining 30 places to place itself  in 62nd position. 62% of the three hundred planned reforms in this area have been completed, including a new law on tenders and public procurement, new commercial courts, and a new concurrence law and planned laws on public-private partnerships. The country has recently released the VAT regulation for public consultation through the tax authority (GAZT) website. The VAT introduction presents an important policy in a country where economic system has always relied on oil revenues. The purpose of this study is to show the marked contrast between the impact of non-oil tax revenue (NOTR) and non-oil non-tax revenue (NONTR) on economic growth in Saudi Arabia.This study applied various essential statistical tools such as descriptive and correlation, paired sample t-test. The results demonstrate that NONTR and NOTR were positive and firmly associated with Nominal domestic product with Co-efficient(r=.888, p >0.05) and (r=.960, p <0.05). The findings outline a significant divergence between the impact of NONTR and NOTR on nominal gross domestic product as shown (t3=23.310, p<0.05) and (t3=23.099, P< 0.05) based on four years of data from 2016-2020. In this paper, we try to explore the revenue composition of Saudi Arabia and its impact on its economy.

scholarly journals DINAMIKA PERUBAHAN EKONOMI MAKRO DAN DAMPAKNYA TERHADAP PERTUMBUHAN PENERIMAAN PAJAK PENGHASILAN NON MIGAS

2017 ◽  
Vol 1 (1) ◽  
pp. 23-37
Author(s):  
Mas'udin Mas'udin
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Income Tax ◽  
Oil And Gas ◽  
Tax Revenue ◽  
Long Run ◽  
Time Period ◽  
Auto Regressive ◽  
Exchange Rate Shocks ◽  
The Impact

This study examines the impact of macroeconomic on tax revenue, especially non-oil and gas income tax. The time period of study ranges from 1970 to 2016. The study was conducted to obtain empirical evidence of factors influencing the growth of non-oil tax revenues in Indonesia. The model was analyzed using Vector Auto Regressive. The VAR estimation shows that there is a one-way relationship between economic growth, inflation rate, exchange rate and non-oil and gas income tax. In the short term, shocks of non-oil and gas income tax is the factor with the greatest influence on the growth of non-oil tax. In the long run, exchange rate shocks, inflation, economic growth, ICP, and non-oil income tax incidence shocks affect the growth of non-oil and gas income tax. Studi ini mengkaji dampak ekonomi makro terhadap penerimaan perpajakan, khususnya pajak penghasilan non migas. Rentang periode kajian selama 46 tahun yaitu dari 1970 s.d 2016. Studi dilakukan guna mendapatkan bukti empiris faktor-faktor yang mempengaruhi pertumbuhan penerimaan PPh non migas di Indonesia. Model dianalisis dengan menggunakan Vector Auto Regressive.  Hasil estimasi VAR menunjukkan terdapat hubungan satu arah antara pertumbuhan ekonomi, tingkat inflasi, nilai tukar rupiah dan PPh non migas. Dalam jangka pendek, guncangan (shock) PPh non migas merupakan faktor dengan pengaruh terbesar pada pertumbuhan PPh non migas itu sendiri. Dalam jangka panjang guncangan kurs, inflasi, pertumbuhan ekonomi, ICP, dan guncangan PPh non migas berpengaruh terhadap pertumbuhan PPh non migas. 

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