The Impact of Tax Reform on Economic Growth in Sudan

Abstract

Tax reform is an important policy tool for governments to promote economic growth. It is an important aspect of economic policy as it can have a significant impact on the overall health of the economy. Furthermore, tax reform, foreign direct investment, population growth, and economic activity are all closely related. This study aims to examine the impact of tax reform on economic growth in Sudan from 1961 to 2021. For this purpose, the study used the gross domestic product as the dependent variable representing economic growth (Y), while the explanatory variables represented tax reform (X1), population growth (X2), and foreign direct investment (X3). The data were collected from the World Bank database. The study applied the ordinary least squares technique, and the obtained results showed that while population growth and foreign direct investment play a significant role in economic growth, tax reform has a little bite impact on Sudan's economic growth during the period under study. So that by reforming the tax system, governments can create a more efficient and fair system that encourages economic growth and investment.