Tax Burden and Economic Growth in OECD Countries: Two Indicators Comparison
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | 34th International Conference Mathematical Methods in Economics 2016 |
| MU Faculty or unit | |
| Citation | |
| Web | http://mme2016.tul.cz/conferenceproceedings/mme2016_conference_proceedings.pdf |
| Field | Economy |
| Keywords | Economic growth; tax burden; tax quota; World Tax Index |
| Description | The aim of this paper is to examine possible effect s of tax burden on real economic growth in 32 OECD countries. The research is focused on individual components of two tax burden indicators. A tax quot a is used in most of the similar studies and World Tax Index is an alternative. Inst ead of concentrating on the ag- gregate effects of tax burden, we rather focus on t he effects of individual taxes in both indicators. These individual indicators are se parately added into the augmented endogenous growth model with physical capital appro ximation as well as other con- trol variables. The dynamic panel regression is use d as a method to analyze any tax burden effects in a time period of 2000-2013. Main findings of this paper are that product taxes show the most significant adverse eff ects on the economic growth. Re- sults also indicate that property taxes can positiv ely stimulate economic growth rate. There is a certain contradiction between our result s and majority of similar empirical studies. Any distortionary tendencies of corporate income tax quotas are identified as statistically insignificant in analysis and have no effects on economic growth. |
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