An investigation on economic growth and tax: A case study of D8 countries from 1990 to 2009

Yahyaabadi, A.; Karimi, F.; Najafabadi, N.

Abstract: Experiences of different countries with efficient tax systems have shown that the high share of tax resources than non-tax sources could prevent many unpleasant economical events. In other words, an efficient tax system could ensure economic system against many different risks. Tax is also a primary source for developing economy used by government. In this study, we investigate the relationship between economic growth and tax among D8 countries using panel data from 1990 to 2009. The results indicate growth domestic product is the most important factor and these governments could collect more tax as the economic figures improve. The results of our survey show that an increase of one percent on GDP will increase taxable income for about 0.0014119 percent. The tourism has more impact since an increase of one unit in tourism & apos; s income; taxable income will increase for about 10.26257 units. One the contrary to other variables, unemployment has a negative impact on taxable income.

How to cite this paper

        APA: Yahyaabadi, A., Karimi, F & Najafabadi, N. (2012). An investigation on economic growth and tax: A case study of D8 countries from 1990 to 2009. Management Science Letters, 2(6), 1865-1870.
    

        Chicago/Turabian: Yahyaabadi, A., Karimi, F & Najafabadi, N. 2012. "An investigation on economic growth and tax: A case study of D8 countries from 1990 to 2009." Management Science Letters 2, no. 6 (2012): 1865-1870.
    

        AMA: Yahyaabadi, A., Karimi, F & Najafabadi, N. An investigation on economic growth and tax: A case study of D8 countries from 1990 to 2009. Management Science Letters. 2012;2(6):1865-1870.
    

References

Albrecht, J. (2006). The use of consumption taxes to re-launch green tax reforms. International Review of Law and Economics, 26(1), 88-103.

Bornhorst, F., & Baum, C.F. (2001). LEVINLIN: Stata module to perform Levin-Lin-Chu panel unit root test. Statistical Software Components, S419702, Boston College Department of Economics.

Cerqueti, R., & Coppier, R. (2011). Economic growth, corruption and tax evasion. Economic Modelling, 28(1-2), 489-500.

G?mez, M.A. (2007). Optimal tax structure in a two-sector model of endogenous growth. Journal of Macroeconomics, 29(2), 305-325.

Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46 (6), 1251–1271.

Hansson, J., Jansson, P., & L?f, M. (2005). Business survey data: Do they help in forecasting GDP growth? International Journal of Forecasting, 21(2), 377-389.

Lee, Y., & Gordon, R.H. (2005).Tax structure and economic growth. Journal of Public Economics, 89(5-6), 1027-1043.

Padovano, F., & Galli, E. (2002). Comparing the growth effects of marginal vs. average tax rates and progressivity. European Journal of Political Economy, 18(3), 529-544.

Wang, D.H.M. (2007). Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries. Physica A: Statistical Mechanics and its Applications, 380(1), 278-286.

⭐ Highly Cited Articles

Journals

MSL Volumes

🔑 Keywords

✍️ Authors

🌍 Countries