THE ANALYSIS OF THE ECONOMIC IMPACT OF VAT ON THE ECONOMIC GROWTH IN SOUTHERN EUROPE

Cosmina-Ștefania Chiricu ()
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Cosmina-Ștefania Chiricu: The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, Bucharest, 010374 Romania

Review of Economic and Business Studies, 2019, issue 24, 47-56

Abstract: The Southern Region of Europe is economically well-developed with highly industrialized urban areas and with great agricultural potential. The empirical analysis is based on an econometric assessment that measures the impact of the VAT on the rate of economic growth for years between 1996 and 2017. The empirical evidence highlighted a significant positive impact of VAT on economic growth, but a poor and ineffective use of the tax revenues during the period under review. Moreover, evidence revealed relatively high rates of VAT in the countries analyzed, with negative impact on the aggregate consumption and a diminishing effect of the consumer’s income.

Keywords: indirect taxes; panel data regression; VAT; economic growth rate. (search for similar items in EconPapers)
JEL-codes: H24 H29 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2019:j:24:chiricuc

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