Measuring the impact of tax revenues on economic growth and investment in Sudan during the period (2006-2021)

Abstract

This study aimed to identify the nature of the relationship between tax revenues ,economic growth and investment in Sudan during the period (2006-2021).Also building mathematical models through which tax revenues can be predicted. The descriptive analytical approach was used.The study relied on secondary data collected from the reports of the Central Bank of Sudan for different years. The study used the Autoregressive Distrbuted Lag Mode methodology (ARDL) to analyze tax revenue data to find out the nature of the relationship between the study variables for the long and short period of time for the Sudanese economist. The standard approach was also relied upon to estimate the relationship and nature between tax revenues, economic growth and investment in Sudan. The research showed the validity of some of the hypotheses of the study. The existence of a positive relationship between tax revenues and economic growth and the invalidity of the hypothesis for the existence of a positive relationship between tax revenues and investment, the study reached a number of results, the most important of which is that there is a positive relationship between tax revenues and economic growth and the inverse relationship between tax revenues and investment, due to the weak ability of Sudan to compete in Attracting foreign investments, The main reason for this is due to the weak investment climate in the country, and the weakness of attractive regulations, laws and policies, The most important recommendation of the study is the need to work to improve the tax base and reduce tax evasion because taxes have a positive impact on GDP.