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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