National taxation policies dynamics in agrarian industry globalization: assessing the efficiency factors

Prateep Wajeetongratana

doi:10.1051/e3sconf/202017513027

Abstract

This research study takes up the criteria of comfortable/harsh national taxation policies in an attempt to analyze various impacts of countries’ tax systems on their macroeconomic growth as well as on countries’ participation in the world economic processes. More specifically, the article analyzes the correlation between the dynamics of tax regimes’ components on the one side and the macroeconomic indicators of countries on the other, while the authors present their own, original classification of the countries divided into groups depending on the level of their wellbeing. Further on, authors’ conclusions are focused around the efficiency of fiscal instruments in part of economic growth stimulation and trade attractiveness. These conclusions are generally applicable to the majority of today’s countries. Also, the study shows how tax policies and tax regimes (de)stimulate economic growth and increase/decrease trade attractiveness of different countries in today’s globalized world. This obviously proves that taxation overall has enough power to affect national macroeconomic growth in general and foreign trade in particular. Indirectly, it also has the power to affect social wellbeing and the state of nationalinfrastructure.

Highlights

In any country, developed or developing one, the key role of taxes is to regulate the market, keep market ups and down balanced and make sure income distribution within the society is relatively fair
Description of current tax conditions in a country often forms the basis for further economic forecasts, strategic planning, public development programs and the like
We put forward several supplementary tasks: - to detect the correlation between national tax conditions and foreign trade success of a country; - to determine whether country’s indicators as per “Doing Business” have any meaningful correlation with country’s success in export and import; - to prove that in relation to country’s economic growth overall the tax rate size is significantly more important than the ease and the transparency of all taxation procedures; - to investigate whether a reverse correlation is applicable here: national economic growth impact foreign trade and future tax conditions in a country

Summary

Introduction

In any country, developed or developing one, the key role of taxes is to regulate the market, keep market ups and down balanced and make sure income distribution within the society is relatively fair. Through all of the above taxes and tax system are pushing country’s economic development forward This is especially applicable to emerging economies, as for them, ongoing economic growth is the key survival factor. Today quite many international organizations and cross-country research groups are involved in international and regional research projects measuring and comparing taxation rates and overall comfort of tax regimes across countries (or regions). This crosscountry comparison of taxation conditions is often further used for ranking countries in that. We put forward several supplementary tasks: - to detect the correlation (if any) between national tax conditions and foreign trade success of a country; - to determine whether country’s indicators as per “Doing Business” have any meaningful correlation with country’s success in export and import; - to prove that in relation to country’s economic growth overall the tax rate size is significantly more important than the ease and the transparency of all taxation procedures; - to investigate whether a reverse correlation is applicable here: national economic growth impact foreign trade and future tax conditions in a country

Literature Overview

Research Methodology

Research results and discussion

Concluding remarks