scholarly journals The Impact of Fiscal Policy on Economic Growth in Palestine

2021 ◽  
Vol 13 (8) ◽  
pp. 51
Author(s):  
Suleiman M. Abbadi ◽  
Mohammed Al-Olabi ◽  
Haytham Owida ◽  
Abdelfattah Abu Shuku
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Value Added ◽  
High Growth ◽  
High Growth Rate ◽  
Foreign Assistance ◽  
Tax Rate ◽  
Tax Revenues ◽  
Rate Of Growth ◽  
The Impact

This study aims at finding the impact of fiscal policy with its various instruments such as, current expenditures, capital expenditures, Tax revenues, non-Tax revenues, foreign assistance and value added tax revenues on economic growth in Palestine represented by the rate of growth of real GDP during the period 1996-2018. A Multiple Regression Analysis was used to build the model and test the hypothesis. The estimated results showed four of the six independent variables have a significant effect on economic growth, with current and development expenditure having a positive effect while tax and non-tax revenue having a negative effect. On the other hand, foreign aid and clearing tax by Israeli authorizations have no significant effect on economic growth, (though, the last one is significant at 10%). The study has also found that government expenditures need to be redistributed between current and development expenditures so as to increase the share of development expenditures in order to maintain a high growth rate. The paper recommends that the tax rate should be reduced on productive projects which are designed to decrease the unemployment rate and increase the rate of growth. The study has also pointed out to the significance of re-negotiating the Paris accord with the Israeli authorities so as to improve the terms of this accord, especially in the case of collecting the VAT revenues.

scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

scholarly journals Fiscal policy and growth in a small emerging economy: The case of Bulgaria

2020 ◽  
Vol 42 (4) ◽  
pp. 386-402
Author(s):  
Desislava Stoilova ◽  
Nikolay Patonov
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Government Spending ◽  
Emerging Market ◽  
Value Added ◽  
Series Data ◽  
Current Account Balance ◽  
Negative Effect ◽  
Investment Spending ◽  
The Impact

AbstractThe purpose of this article is to study the impact of fiscal policy on economic growth in Bulgaria for the period 1995–2018. The descriptive analysis is focused on the general trends in fiscal policy and tax structure. The influence of government spending and taxation on economic growth is studied through regressions on time-series data. The empirical estimates prove that taxation is a more reliable instrument of fiscal policy than government spending in terms of a small open emerging-market economy. The dilution of the effect of public spending is probably caused by the high negative values of the current account balance that have been maintained for long periods. Thus, when domestic supply is weak, government expenditure cannot stimulate domestic production, as supply is dominated by import goods. Public investments demonstrate a negative effect on economic growth, which suggests a low productivity of investment spending. A factor of great importance is the level of corruption, which is strongly correlated with government investments, but is harmful to their efficiency. The Bulgarian tax system demonstrates consistency with economic growth. The receipts from value-added tax seems growth-conductive. The decrease of the corporate income tax rate exerts a positive impact on economc performance during the analyzed period, while personal income taxation demonstrates a negative effect. Property taxation has no significant relation with the growth of the Bulgarian economy.

scholarly journals Whether Fiscal Stance or Monetary Policy is Effective for Economic Growth in Case of South Asian Countries?

2008 ◽  
Vol 47 (4II) ◽  
pp. 791-799 ◽  
Author(s):  
Shahid Ali ◽  
Somia Irum ◽  
Asghar Ali
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Asian Countries ◽  
Policy Mix ◽  
Monetary Policies ◽  
Tax Rate ◽  
The Government ◽  
The Impact ◽  
Fiscal And Monetary Policy

Monetary policy and fiscal policy are sister strategies that can be used alone and in combination to direct the economic goals. In the literature relative efficacy of fiscal and monetary policy has been studied extensively. Friedman and Meiselman (1963), Ansari (1996), Reynolds (2000, 2001), Chari, et al. (1991, 1998), Schmitt and Uribe (2001a), Shapiro and Watson (1988), Blanchard and Perroti (1996), Christiano, et al. (1996), Chari and Kehoe (1998), Kim (1997), Chowdhury (1986, 1988), Chowdhury, et al. (1986), Weeks (1999), Feldstein (2002) and Cardia (1991) have examined the impact of fiscal and monetary policies on various economic aggregates. However, the bulk of theoretical and empirical research has not reached on conclusion concerning the relative power of fiscal and monetary policy to effect economic growth. Some researchers find support for the monetarist view, which suggests that monetary policy generally has a greater impact on economic growth and dominates fiscal policy in terms of its impact on investment and growth. [Friedman and Meiselman (1963); Ajaye (1974); Elliot (1975); Batten and Hafer (1983)], while other argued that fiscal stimulates are crucial for economic growth. [Chowdhury (1986); Olaloye and Ikhide (1995)], On the other hand, according to Cardia (1991) macroeconomic activities are largely explained by some other variables. The experiment of 1970s clearly demonstrates that a policy mix produced only stagflation. Some economist took keen interest in money by combining Keynesian neoclassical mixture which is called the “funnel” theory by James Tobin. The argument was that tax rate and money growth simultaneously leads to stagflation thus the Government could choose either fiscal or monetary policy stimulus which will enhance growth. [Reynolds (2001)].

scholarly journals The Impact of Taxation on Economic Growth: Case Study of OECD Countries

2015 ◽  
Vol 14 (4) ◽  
pp. 309-328 ◽  
Author(s):  
Rudolf Macek
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Value Added ◽  
Oecd Countries ◽  
Corporate Taxation ◽  
Income Taxes ◽  
Personal Income ◽  
Individual Growth ◽  
Tax Revenues ◽  
The Impact

Abstract The aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the OECD countries for the period of 2000–2011. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human capital and technology. The analysis in this paper is based on extended neoclassical growth model of Mankiw, Romer and Weil (1992), and for the verification of relation between taxation and economic growth the panel regression method is used. The taxation rate itself is not approximated only by traditional tax quota, which is characteristic by many insufficiencies, but also by the alternative World Tax Index which combines hard and soft data. It is evident from the results of both analyses that corporate taxation followed by personal income taxes and social security contribution are the most harmful for economic growth. Concurrently, in case of the value added tax approximated by tax quota, the negative impact on economic growth was not confirmed, from which it can be concluded that tax quota, in this case as the indicator of taxation, fails. When utilizing World Tax Index, a negative relation between these two variables was confirmed, however, it was the least quantifiable. The impact of property taxes was statistically insignificant. Based on the analysis results it is evident that in effort to stimulate economic growth in OECD countries, economic-politic authorities should lower the corporate taxation and personal income taxes, and the loss of income tax revenues should be compensated by the growth of indirect tax revenues.

scholarly journals Modelling the Impact of Fiscal Policy on Non‑Oil Gdp in a Resource Rich Country: Evidence from Azerbaijan

2016 ◽  
Vol 64 (6) ◽  
pp. 1869-1878 ◽  
Author(s):  
Khatai Aliyev ◽  
Bruce Dehning ◽  
Orkhan Nadirov
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Granger Causality ◽  
Public Expenditures ◽  
Causality Analysis ◽  
Tax Revenues ◽  
Long Run ◽  
Short Run ◽  
Oil Sector ◽  
The Impact

This paper analyses the impact of public expenditures and tax revenues on non‑oil economic growth in Azerbaijan for the period of 2000Q1‑2015Q2 by employing OLS, ARDL, FMOLS, DOLS, CCR and Granger Causality techniques. Different cointegration methods result in consistent results. In this study, there is strong evidence of significant long‑run positive contributions from public expenditures to non‑oil sector output. Results also show that tax revenues significantly slow down non‑oil economic growth in the long run. Granger Causality analysis finds the existence of a bidirectional short‑run association between non‑oil GDP and public expenditures, while tax revenues Granger Cause both variables. The research findings should be useful for Azerbaijan fiscal policy makers to consider now and in the future. Current plans in Azerbaijan for both public expenditure cuts and tax revenue increases are likely to cause contraction in the Azerbaijan’s non‑oil sector GDP.

scholarly journals Economic Growth of Asia Pacific Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 52-60
Author(s):  
Nabaz T. Khayyat ◽  
Sherwan Kafoor
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Trade Openness ◽  
Government Expenditure ◽  
Asia Pacific ◽  
Tax Rate ◽  
Education And Health ◽  
Fixed Capital Formation ◽  
Main Driver ◽  
The Impact

This empirical study examines the determinant of economic growth among Asia Pacific countries. While many other studies focused on specific economies with particular determinants identified from previous studies, this study expands the boundaries of countries to examine different factors that are expected to affect the economic growth in Asia Pacific countries. Estimation results of this study are based on the analysis of a panel data for the period 1994–2011. The impact of total population, industry share of GNI, interest rate, gross fixed capital formation, and tax rate are statistically examined to be strongly significant for the whole sample. In the case of government expenditure and trade openness, they are examined to be significant to some degree. Finally, though human capital is expected to be the main driver of economic growth, the result from correlation analysis revealed that there is a high correlation between expenditure on education and health. To show the impact of human capital on economic growth in Asia Pacific countries, estimation with years of schooling may enhance the study instead of using expenditure on education and health.

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.

The Impact of the Value-Added Tax Rate on the Entrepreneurial Behavior Model (On the Example of Palm Oil Importers)

2020 ◽  
pp. 181-197
Author(s):  
Anna V. Lozhnikova ◽  
◽  
Aleksandr L. Bogdanov ◽  
Tatiana G. Vayderova ◽  
Larisa N. Spivakova ◽  
...  
Keyword(s):  
Palm Oil ◽  
Chemical Industry ◽  
Food Production ◽  
Food Industry ◽  
Value Added ◽  
Entrepreneurial Behavior ◽  
Value Added Tax ◽  
Dairy Food ◽  
Tax Rate ◽  
The Impact

The article discusses the problem of the reducing life quality of Russians in the new conditions of the market economy. The Russian phenomenon of the use of “palm oil” as a priority raw material in food production is analyzed against the decrease in its use in the EU countriesand against the expansion of the daily diet of the Chinese due to increased dairy food consumption. Opposing points of view of key industry associations (the Dairy Union of Russia and the Fat and Oil Union of Russia) have been identified and are presented in the context of palm oil use in dairy food production. The results of a statistical study of the demand for palm oil from Russian importers against the background of an increase in the value-added tax rate from 10 to 20% in October 2019 are presented. The data of customs statistics on palm oil imports were analyzed in the context of countries of origin, nine codes of the commodity nomenclature of foreign economic activity, months and years within the five-year period of 2016–2020, as well as in the context of the importing regions of Russia. The results of statistical processing of data by the Federal Customs Service revealed no effect of the sharp increase in the VAT rate on the volume of palm oil imports. The analysis of foreign statistics revealed a significant presence of actors in the chemical industry among transnational companies that are the largest consumers of palm oil. The model of entrepreneurial behavior based on consumption in palm oil production, formed and widely spread in the Russian food industry market, is criticized. 98% of palm oil and its fractions imported into Russia goes to the needs of food industry enterprises, and the authors consider that the foreign ownership of these enterprises plays an important role. In the authors’ opinion, in many respects, the latter fact determined our country’s ranking first in the food chemistry sector in the distribution of published patent applications by technology field for the top 10 origins in 2014–2016. In this respect, Russia is far ahead of China, the USA, Japan, South Korea, Germany, the UK,France, and Switzerland. In China, systematic research is being carried out on the ratio of palm oil use in the food (primarily, instant noodles, other fast food) and non-food (chemical industry, including cosmetics production) sectors.

Azerbaijan

2017 ◽  
pp. 182-194
Author(s):  
Erdal Tanas Karagöl
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
Growth Rate ◽  
High Growth ◽  
High Growth Rate ◽  
Energy Resources ◽  
Sector Structure ◽  
Economic Relations ◽  
Economic Organizations

Azerbaijan has tried to show progress both politically and economically after it gained independency. It leaded fastest economic growth and the contribution to this transformation is having the advantages of energy resources. After declaring its independence, the sector structure has been modified and new employment areas have been formed causing a high growth rate. The country also has participated in international economic organizations to develop economic relations and cooperate with other countries.

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