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THE                      JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 47-59

                    CONCLUSIONS
                    Since 2004, Azerbaijan used oil revenues to finance government expenditure besides
                    tax  revenues.  Until  the  sharp  decrease  in  oil  prices  in  2014-2015,  Azerbaijan’s
                    economy boomed thanks to oil revenues. Since Azerbaijan’s economy experienced a
                    sharp recession and devaluation of currency after a decrease in oil prices, the emphasis
                    has  been  on  diversifying  away  government  revenues  from  the  oil  economy  and
                    founding fiscal rules.  While transfers from SOFAZ (State Oil Fund of Azerbaijan)
                    summed up to average of an 54% of total budget revenues in the period of 2010-2015,
                    this number has been 42% on average since 2015. As the government strategy focuses
                    on decreasing dependency of the economy and budget revenues from the oil sector,
                    the impact of government tax revenue on growth attracts more interest.

                    We analyzed the impact of tax revenue on economic growth utilizing the ARDLBT
                    approach  and found a negative link between government  tax revenue and non-oil
                    economic growth in both the short and long run. Regarding total GDP, there is still a
                    statistically significant negative link between tax revenue and total economic growth,
                    but the weak negative link in the short-term.

                    Combining the findings of a statistically significant negative link between government
                    revenue  and  non-oil  GDP  growth  in  the  long  run  with  the  focus  on  government
                    strategy on enhancing non-oil economic growth, raises a crucial concern. Considering
                    the vast literature review on the different economic impacts of various taxes, we think
                    there is need for further research on this topic. Unfortunately, currently, there is no
                    publicly available quarterly data on tax revenues by type. Research on the impact of
                    tax  types  on  economic  growth  separately  would  offer  important  findings  for  tax
                    policy. By changing the tax revenue structure on behalf of tax types with less harm on
                    economic growth, budget revenue targets may be satisfied without halting economic
                    growth.

                    REFERENCES
                    The Tax Code of the Republic of Azerbaijan. https://cis-legislation.com/document.
                    fwx?rgn=2601

                    Central Bank of the Republic of Azerbaijan – www.cbar.az

                    Abata, M.A., Osamor, I.P., Elluh, C.C. (2023). Abata, M.A., Osamor, I.P., Elluh, C.C.
                    (2023). The Effect of Direct and Indirect Taxes on Economic Growth: Evidence from
                    Nigeria.  EPRA  International  Journal  of  Economics,  Business  and  Management
                    Studies (EBMS). Vol. 10 No. 6. https://doi.org/10.36713/epra13679





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