Taxation Effects on Economic Growth

Kremastioti Vasiliki and Athanasios Anastasiou

World Economics, 2023, vol. 24, issue 1, 87-108

Abstract: We examine the impact of total taxation and individual taxes on growth in 21 European Union countries from 2000 to 2017 using OECD data. The method used is ordinary least squares. Secondly, owing to the endogeneity which is observed in our estimation, we used a two-step system—generalised method of moments—for the analysis. Tax on corporates appeared statistically important, which shows a strong relationship between tax on corporates and the logarithm of Gross Domestic Product. A policy of high taxation can impact negatively on investment, entrepreneurship and activities which improve research and development. The negative effect of taxes on corporates during an economic crisis could be responsible for the increase in tax evasion, discouragement of small business activity and increase in corruption and inequalities.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldeconomics.com/Journal/Papers/Article.details?ID=887 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wej:wldecn:887

Access Statistics for this article

More articles in World Economics from World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE
Bibliographic data for series maintained by Ed Jones ().