Page 52 - Azerbaijan State University of Economics
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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 47-59
Eneche and Stephen (2021) found a statistically significant positive relationship
between corporate income tax and GDP, as well as between VAT and GDP.
Adefolake and Omodero (2022) results are in line with Eneche and Stephen (2021)
on the relationship between VAT and GDP, but not regarding the relationship between
corporate income tax and GDP, they found a statistically significant negative
relationship. They also found a statistically significant positive relationship between
Nigeria's existing Petroleum Revenue Tax (a tax levied on oil production profits) and
GDP.
Using the ARDL model, Abata and co-authors (2023) found a negative relationship
between all 3 types of taxes they analyzed (corporate income tax, oil profit tax, excise
and customs duties) and gross national product (GNP). The only positive statistically
significant relationship Abata et al. (2023) found was between VAT and GNI.
Oghogho et al. (2023) found a positive relationship between oil profit tax and property
tax and GDP in the long run and a negative relationship between property tax and
GDP in the short run.
Kaewsopa et al. (2022) analyzed the relationship between different tax categories and
economic growth using the Ordinary Least Squares regression method covering the
period between 1999 and 2018 in China and Thailand. They found statistically
significant negative links between economic growth and three tax types – personal
income tax, corporate income tax and value-added tax in Thailand. Regarding China,
they found statistically significant negative links between economic growth and
corporate income tax, while contradicting Thailand results as they found statistically
significant positive link between economic growth and two tax types – personal
income tax and value-added tax.
Aliyev and Nadirov (2016) utilized the ARDL Boundary Tests cointegration model
to research the long-term and short-term impacts of government spending and non-
transfer government revenues over the non-oil economy of Azerbaijan for the period
2000-2015. They found a statistically significant negative link between government
tax revenue and economic growth in the long term. Interestingly, the short-term results
of this study indicated a statistically significant positive link between tax revenue and
economic growth.
The negative short term relationship between these indicators may be attributed to the
automatic stabilizers effect. Aliyev, Dehning, and Nadirov (2016) found that
government tax revenues Granger Cause real non-oil GDP and real government
spending.
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