Impact Of Revenue Research Articles

The Impact of Tax Structure on Economic Growth: New Empirical Evidence from Central and Eastern Europe

This study aims to provide new evidence of the impact of total tax revenue and tax structure on economic growth in a sample of eleven European Union (EU) member states located in Central and Eastern Europe (CEE), namely Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. The methods used are description, comparison, synthesis, regression and correlation analysis of annual panel data for the period 2000-2021. The ordinary least squares (OLS) method is used to estimate the parameters of the regression models. The causal relationship between the variables is confirmed by the Granger causality test. The main results indicate that there is a significant negative effect of total government spending on economic growth rate, while the total tax revenue has a positive impact. These findings suggest low efficiency of public spending. The structure of tax systems does not seem to hinder economic growth, as both direct and indirect tax revenues show a positive growth-supporting effect. Only social security contributions are estimated to have a detrimental impact on economic growth. Value added tax and both income taxes (personal and corporate) are found to be growth-conductive, while property taxes and excise duties seem to have no significant impact on the growth rate. Based on the research findings it is obvious that government expenditure is not an effective tool for positive fiscal impact on the economy, so policymakers can support economic growth by decreasing the share of public spending in GDP or by increasing its efficiency. It is recommended to maintain the current ratio between direct and indirect tax revenue, while carefully considering changes to social security systems to promote sustainable and inclusive growth.

Measuring the Impact of Oil Revenues on Iraq’s GDP for the Duration (2005-2020)

The oil sector has an important role in the Iraqi economy represented by its revenues, as oil exports constitute about 96% of the total exports on all macroeconomic variables, including national income, gross domestic product, foreign trade, investments in all its forms and its determination of economic development trends that depend on fluctuations in international oil prices in addition to the unexpected factors such as external shocks. Oil exports play an important role in the structure of foreign trade in oil countries, including Iraq, which faces many challenges that hinder the process of economic development, represented by the lack of capital prepared for investment and the lack of domestic savings. The controversy of the study lies in knowing whether the oil revenues contributed to increasing the gross domestic product and financing the general budget, that is, improving economic growth rates or not. The research aims primarily to achieve the validity of the hypothesis by shedding light on the reality of the oil sector in Iraq, the material, moral capabilities, and oil privileges to clarify the impact of the oil sector and its role in improving economic growth rates. Then, the research relied on the inductive approach in order to reach the objectives of the research by identifying the concept of the oil sector and its impact on achieving desirable economic growth rates using the standard quantitative method in measuring the impact of the oil sector on the gross domestic product in Iraq using the (Eview9) program. The benchmark indicates that the relationship between oil revenues and GDP is a direct relationship, and oil revenues are the main source for generating national income and GDP, as Iraq directly depends on oil revenues and thus the validity of the hypothesis was proven through the analytical side and the standard side, as oil revenues plays a major role in increasing the gross domestic product and thus improving the rate of economic growth.

Favorable Fiscal Self-Sufficiency Enables Local Governments to Better Improve the Environmental Governance—Evidence from China’s Lower-Pollution Areas

With the rapid development of industrial economy, local governments in China have invested a large amount of financial funds in environmental protection. In the era of widespread use of clean energy, local governments have a greater responsibility to coordinate fiscal policies with industrial development policies to improve regional environment. Local governments with large fiscal surpluses would make more efforts to improve environmental efficiency, rather than attract heavily polluting industrial enterprises to develop their local economies, and more likely to promote the use of clean energy equipment and raise environmental awareness in government. This paper focuses on testing the impact of abundant fiscal revenue of local governments on the efficiency of regional environmental governance with the data in all prefecture-level cities of China’s Guangdong province from 2001 to 2020. We estimate local environmental governance efficiency score with super-efficiency SBM method, taking unexpected output into account. Then we find that fiscal affluence has significant positive effect on the efficiency of environmental governance and the environmental awareness of the government also has obvious help in improving local environmental efficiency. We hope that these findings will provide practical help for local governments to improve their fiscal policy agendas and the quality of environmental governance.

TAX REVENUE VOLATILITY AND ITS IMPLICATION ON THE NIGERIA ECONOMIC GROWTH

The study examined the analysis of the impact of tax revenue (TR) volatility on economic growth (EG) in Nigeria between the periods of 1994-2021, which is a period of 28years. This was done using the measures TR volatility, namely; Petroleum Profit Tax Volatility (PPTV), Value Added Tax Volatility (VATV), Company Income Tax Volatility (CITV) and Custom and Excise Duties Volatility (CEDV) in relation to economic growth proxied with Gross Domestic Product (GDP). The data was sourced from the CBN Statistical Bulletin and Annual Report and analyzed with descriptive statistics, correlation matrix, unit root test, Auto-regressive Distributed Lag (ARDL) Bound Co-integration test, and ARDL Co-integrating and Long form. The findings showed that PPTV has a p-value of 0.0089 and a p-value of 0.0051 on the short and long run (S&LR) respectively. Hence, PPTV had a considerable effect on GDP in the S&LR; VATV has a p-value of 0.0067 and 0.0001 both on the S&LR. Thus, VATV had a considerable effect on GDP in the S&LR; CITV has a p-value of 0.1838 and a p-value of 0.1892 in the S&LR respectively. Thus, CITV had an inconsequential effect on GDP in the S&LR and CEDV has p-values of 0.0253 and 0.0021 both on the S&LR. Hence, CEDV has a considerable effect on GDP in the L&SR. It is evident that measures of tax revenue volatility used have mixed effects of RGDP. It is only PPTV, VATV and CEDV that have considerable effects on GDP in S&LR while CITV exerts inconsequential effect on RGDP in S&LR. Hence, the study concluded that TR volatility had considerable effects on EG. It is advised that government should restructure the country's petroleum industry by stepping up efforts to process crude oil and solely exporting processed oil to the global market.
 Keywords: Tax, Revenue, Volatility, Inconsequential Effect, Considerable Effects.

The Impact of Hotel Tax Revenue in the COVID-19 Era as an Increase in Regional Original Income in Indonesia

The sharing economy as a new business model is certainly a challenge for the Government to make policies related to this digital transaction. Governments are generally slow to accommodate new business models. On the other hand, sharing economy companies have a great potential as they provide accommodation services. The purpose of this study is to analyze the challenges in increasing the revenue of Local Own-Source Revenue and the revenue opportunities from the expansion of the Hotel Tax Object due to the emergence of various types of sharing economy companies in Indonesia. The method used a qualitative method with data collection through literature study of various publications related to the theme. The results of the study show that in the collection of Hotel Taxes there are challenges in efforts to increase the revenue of Local Own-Source Revenue in Indonesia. First, the impact of Sharing Economy Companies on Hotel Tax Revenue through online platforms can cause a potential tax loss. Second, the impact of the COVID-19 pandemic on hotel industry business activities in the causes of business closures and decline revenue. Furthermore, in the collection of Hotel Taxes, there is an opportunity to increase the revenue of Local Own-Source Revenue in Indonesia, namely (1) the expansion of the Hotel Tax object through the improvement of the Law on Regional Taxes and Regional Levies by considering a new source of Hotel Tax revenue by online platforms in the form of accommodation facilities (2) Providing tax incentives in the form of reduced rates.

Economic growth of India and the impact of direct and indirect tax : An ARDL approach

This paper examines and portrays the impact of direct and indirect tax revenue on economic growth in India. Numerous studies were conducted earlier to study taxation from various perspectives, but very few have discussed the impact of taxation on economic growth. Various tax revenue reports from 1990 to 2021 were collected to conduct the present research. An ARDL inbound and outbound tests were applied to continue the investigation further. The study identifies tax variables that have a positive relationship with economic performance. Finally, an in-depth analysis was conducted between variables with the help of ARDL long-run trend analysis. The outcome reveals that direct and indirect tax growth rates positively impact GDP growth. It was suggested that government should focus on corporate tax policies, and more incentives for upcoming and existing entrepreneurs must be provided. The present study is limited only to tax and GDP revenue; it does not focus on economic or corporate policies. However, this research forms a base for further study in taxation, which will support designing policies for economic growth. It is known that the Indian government has introduced nation-one tax policy and implemented GST. Hence, further study can be conducted on the dynamics of GST and its impact on GDP or revenue growth rates.

THE RELATIONSHIP BETWEEN TAXATION AND ECONOMIC GROWTH. STUDY CASE: CEE COUNTRIES

Economists argue that macroeconomic activity can be affected differently, through direct taxes and indirect taxes. the impact of tax levies on the economy is contradictory, there are studies that show their negative influence, and others support the positive influence of taxes on the economy of a state. These debates and contradictory results are a consequence of the way of using fiscal policy instruments, within each state, but also of the level of development, as well as of the research method used and the variables included in the model. The objective of the present research refers to the investigation of the impact of tax revenues, but also of social security contributions on the gross domestic product, the main measure of the size of the economy. The reference period within the panel study, it covers the years q12005-q42020, and the empirical results cover both developing and developed nations in the CEE. The choice of year 2005 as the starting period is motivated by highlighting the period before and after the economic-financial crisis, regarding the analysis of the existing interaction between the fiscal system and the economy of the states in the sample. The research methodology involves the study of three heterogeneous panel groups. The analysis method is the random effect panel regression, on the basis of which it was demonstrated that there are significant and positive correlations between the fiscal variables and the gross domestic product. The research results draw attention to the fact that the fiscal effect on the economic growth is lower, but not negligible, in relation to other influencing factors, which were not taken into account in the present analysis.

Impact of Tax Revenue on Nigerian Economic Growth (1994 – 2020)

Impact of Tax Revenue on Nigerian Economic Growth (1994 – 2020)

Impact of Revenues from Oil and Non-Oil Sectors on the Economic Growth of Azerbaijan

The main purpose of the study is to determine the relationship between the revenues obtained from the oil and non-oil sectors of Azerbaijan, which is a country dependent on the oil industry, and its economic growth. The fact that Azerbaijan is an oil-dominated country and a large part of its exports consist of oil may have caused us to think that the share of oil in the country's incomes will be higher. However, the fact that the country generally exports oil in crude form and imports it ready-made affects the final result. In this study, the share of the oil and non-oil sectors in the economic growth of the country over a 20-year period is determined. Another aim of the study is to reveal how the earnings from these two different sectors affect the employment level of the country. During the study, the logarithm of the variables was taken and included in the analysis in order to measure the strong relationship between the data. According to the results obtained, the development of these sectors affects the decrease in unemployment levels and has be a positive result between the realized economic growth and oil revenues and non-oil sector revenues.

ANALYSIS EFFECT OF GOVERNMENT REVENUES ON INDONESIA'S ECONOMIC GROWTH ON 1991-2020

The objective of this study is to investigate the impact that exports, imports, and tax revenues have had on the rate of economic growth in Indonesia between the years 1991 and 2020. This study follows a quantitative approach to research methodology. The data that were used in this analysis were secondary data that were gathered from the Ministry of Finance of the Republic of Indonesia and the World Bank. The data for this study were compiled by using time series data from 1991 all the way up until 2020. The approach of using Ordinary Least Squares with an Error Correction Model as the analytical model that is applied is utilized. According to the findings of this study, both long-term and short-term variables related to exports have an effect that is detrimental to the economic growth of Indonesia. Both long-term and short-term changes in Indonesia's imports have no effect on the country's overall economic growth. Further, the impact of long-term tax revenue on economic growth in Indonesia is negative, while the impact of short-term tax revenue is meaningless to the country's overall development.

State Economic Impacts of Industrial Park Development: Evidence from Virginia’s Tobacco Region Megasite Program

Industrial park development is commonly advocated by state and local economic developers to aid in business attraction efforts. However, there is limited evidence of its effectiveness in promoting economic growth, particularly in rural and lagging regions in comparison to other economic development tools. This paper examines the literature on the relationship between business site availability and economic development and the rationale for public sector industrial land development assistance. Results from a survey of local economic developers in Virginia are used to characterize industrial park absorption and occupant attributes. Using this information, ex-ante state economic and tax revenue impact analyses are performed for a state-funded industrial park development program serving a rural region of Virginia, the Tobacco Region Megasite Program. The paper examines conditions that affect the economic and tax revenue impact potential of industrial parks and highlights remaining information gaps.

Does investment in energy matter for economic growth? Evidence from BRICS countries

PurposeThis study aims to explore the impact of energy investment on economic growth. Specifically, the study investigates the impact of energy consumption, foreign investment, infrastructure development, tax revenue, human capital, international tourism revenue and trade volume on economic growth.Design/methodology/approachTo achieve the aim, the authors sample the 24-years (1996–2019) financial statistics of BRICS countries. Given the econometric recommendations supplemented by the Johnsen cointegration test, the current study uses the fully modified ordinary least square model for regression analysis and checks the robustness through robust least square model.FindingsThe statistical analysis shows a direct impact of energy investment on economic growth. In addition, the statistical results indicate a positive impact of energy consumption, foreign investment, infrastructure development, tax revenue, human capital and trade volume on economic growth.Research limitations/implicationsThe results present practical implications for policymakers regarding the adequate investment in energy production that can further promote the economic growth in BRICS countries. Policy officials should enhance the volume of renewable energy production, foreign investment and tax revenue. Additionally, it is equally suggested to policymakers regarding the development of infrastructure and human capital to ensure economic growth.Originality/valueThis study supplements the novel and robust evidence on investment in energy-leading economic growth.

Pengaruh Ukuran Pemerintah Dan Pendapatan Asli Daerah (PAD) Terhadap Kinerja Keuangan Pada Pemerintah Kota Surabaya

The purpose of this research is to look into and assess the impact of local revenue and government size on the Surabaya municipal government's financial performance. This research uses quantitative research methods. In this study, the object of research used is the size of the Surabaya city government in this case, namely total assets and the annual report of Regional Original Revenue (PAD). The sample method applied in this research is purposive sampling method. The analytical method used is the multiple regression analysis and classical assumption test because this analysis is able to measure the strength of two or more variables with the help of the SPSS program. The results based on the results of the t test partially show a significance value of 0.013 < 0.05 and t count < t table, therefore partially the size of the Regional Government (UPD) has no effect on the Financial Performance of the Regional Government, while based on the results of the t test partially The significance value shows the results of 0.06 <0.05 and t count > t table, therefore Regional Original Income (PAD) has an effect on Regional Government Financial Performance.
 
 Keywords : Government Size, Regional Original Revenue, and Regional Government Financial Performance

Effects of Online System of Taxation on Economic Growth in Nigeria (2005–2020)

This study carried out an empirical analysis of the effect of the online system of taxation on economic growth in Nigeria covering the period of 2005–2020. Data for the research was extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin (2020). The multiple regression with the application of Ordinary Least Square (OLS) technique was employed in obtaining the numerical estimates of the coefficient in different equations (Pre-Online and Post-Online Tax Regimes). The One-Sample Test was employed to estimate the difference between pre-online and post-online taxation systems on economic growth in Nigeria. The major findings of the study revealed that pre-online tax revenue has a negative and non-significant effect on economic growth in Nigeria, post-online tax revenue has a positive and significant effect on economic growth in Nigeria, and there is significant difference between pre- and post-online tax revenue in Nigeria. It is the recommendation of the study that there should be stringent penalties imposed on any individual or corporate body who indulges in any form of tax malpractices, irrespective of states. If the positive impact of tax revenue on economic growth should be maintained, then the online tax system should be constantly reviewed so as to address emerging problems and to evolve with the changing economic landscape and increased complexity of today’s business environment.

Economic Analysis of Public Expenditure, Revenue, and Resource Gap in Nepal

The aim of this study is to look at the influence of government spending and revenue on Nepal's government resource gap. The study employed a descriptive and exploratory research design. The secondary data covers 26 years from 1995 to 2020 and was collected from various economic surveys in Nepal. Econometric tools like descriptive statistics, correlation analysis, Augmented–Dickey-Fuller test, unit root testing, regression analysis, and ex-post forecasting are used to explore the prediction of the dependent variable. For model validity, the researchers utilized the LM test and Jarque-Bera test. There is a moderately positive relationship between government expenditure and the resource gap, however, there is a negative impact of government revenue on the government resource gap in Nepal. Government expenditure and income are individually significant in determining the size of the resource gap in Nepal. The value of the root mean squared error is 0.986, which is very small. Therefore, the gap between the actual value and the predicted value is small, and they move together. It is suggested that policymakers increase revenue and manage government expenditure based on ground reality to decrease the resource gap. A government resource gap study can assist policymakers in determining how their present resource levels are assisting them in meeting their objectives. The results, findings, and methods of this study are not affected by what other researchers have found and concluded.

Tax Revenue and Nigeria’s Economic Growth

The study examined the impact of tax revenue on Nigeria’s economic growth using CIT, VAT and PPT as referents for tax revenue and GDP for economic growth from 2008 to 2017. The exploratory design and ex-post fact design were adopted for the study. The study data were secondary data sourced from the CBN statistical bulletin. The least squared technique and the Granger Causality Test were employed in estimating the equilibrium relationship and the cause and effect relationship between the variables in the model respectively. The study showed a positive but insignificant relationship between the study variables. The study then concluded that poor management of tax revenue accounts for the insignificant relationship and then recommended that the government should efficiently and effectively manage and utilized tax revenue by using the proceeds to provide necessary social amenities and embark on aggressive infrastructure development to ensure economic growth.

Measuring and analyzing the impact of public revenues on the balance of payments in Iraq for the period (1990-2020) according to a methodology ARDL

Public revenues are one of the most important tools that have a clear impact on economic activity, as well as the balance of payments, which is no less important than public expenditures because it reflects the external activity of the national economy. Public expenditures are linked to a wide range of economic variables, including the balance of payments. The balance in the balance of payments if it suffers from an imbalance

Impact of Taxation on Economic Growth: Empirical Evidence from Pakistan

Purpose: Governments rely on taxes, but a high tax rate can slow economic growth. Fiscal policy objectives can be achieved most effectively by lowering tax collection costs and boosting economic growth through efficient taxation. This study aims to find the impact of tax revenue on Pakistan's economic growth.
 Design/Methodology/Approach: The time series dataset spanning 1985–2021 is used for the current analysis. GDP is used as the dependent variable, while tax revenue and other fiscal policy variables like government spending, inflation, gross fixed capital formation and current account balance are used as the explanatory variables. The stationarity of the data is checked using the ADF test. The results of the ARDL bound test, which is used to determine whether there is a long-term link between the variables and a short-term relationship, indicate a long-term relationship.
 Findings: Current analysis reveals that tax revenue and inflation have a negative and significant impact while government expenditures and gross fixed capital formation have a positive and significant impact on the economic growth of Pakistan.
 Implications/Originality/Value: According to the study's results, Pakistan's government should ensure that tax rates are set at the right level to bring in enough money to pay for government spending that helps the economy grow.

The Impact of Natural Gas Revenue on Economic Growth in Tanzania

This article investigates the linkage between natural gas revenue and economic growth in Tanzania from 2005q1 to 2017q2 periods. The study uses unit root analysis, Gregory Hansen (GH) cointegration test, autoregressive distributed lag (ARDL) bound cointegration test, and the error correction model (ECM). The Zivot and Andrews (ZA) and Clemente-Montares-Reyes (CMR) unit root tests reveal that the series had a mixed order of integration, i.e., I(0) and I(1) with a single structural break. The GH cointegration test suggests that the break date is 2012q1. Both GH and ARDL bound cointegration tests indicate that a long-run relationship exists. The empirical results show that natural gas revenues stimulate economic growth in Tanzania both in the long-run and short-run. Thus, it validates the non-existence of the resource curse hypothesis. Moreover, since the government’s share of revenues increase with gas prices, the study recommends stimulating more economic growth by promoting more uses of natural gas in other sectors of the economy—i.e., industry, transport and households—where gas prices are high. Tanzania must also soon decide on an export-oriented liquefied natural gas (LNG) project to fetch a competitive gas price.

CONCENTRATION OF ENTREPRENEURIAL ACTIVITY IN THE REGIONS OF UKRAINE IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

The state and features of small business development in Ukraine are studied in the context of ensuring the postulates of sustainable development. Positive and negative trends and changes are revealed, prospects of the development of business structures are defined in terms of sustainable development. Assessing the concentration of entrepreneurial activity in the regions of Ukraine, we note the presence of certain fluctuations in the dynamics and interregional differences in the density of economic entities per 10 thousand population. Based on the analysis of the entrepreneurial activity in the regions of Ukraine, it is established that despite the insufficient level of small business development, its influence on the economic development of the regions is growing. This is confirmed by the calculated coefficient of the impact of revenues from small businesses to the local budget on GRP, the importance of which is growing in all regions. The calculation of the ratio of personnel costs in the field of small business to personnel costs in all enterprises shows its tendency to decrease in most regions, which is explained by an increase in business shadowing rather than lower wages and a reduced number of employees in these enterprises. It is proved that the development of entrepreneurship solves not only economic but also social issues. It is an effective means of restructuring, enhancing innovation, overcoming imbalances in certain market segments, creating new jobs and reducing unemployment. Stimulating the development of an entrepreneurial activity, supporting small business and creating conditions for economic management are among the primary tasks of the state's economic policy.