The impact of taxation on economic growth in South Africa
Hlalefang Khobai and
Khumbuzile Dladla ()
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Khumbuzile Dladla: Department of Economics, Nelson Mandela University
No 1818, Working Papers from Department of Economics, Nelson Mandela University
This paper investigates the impact of taxation on economic growth in South Africa. Yearly data for South Africa for the period 1981 – 2016 was used to develop the Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a negative relationship between taxes and economic growth in South Africa. The findings of the study include that economic growth, trade and openness, capital and taxes are co-integrated. This paper suggests that fiscal policy is very important to force sustainable economic growth in South Africa.
Keywords: Taxation; Economic growth; Auto-regression Distribution Lag Model (ARDL); Co-integration; South Africa. (search for similar items in EconPapers)
JEL-codes: E27 H20 (search for similar items in EconPapers)
Pages: 17 pages
New Economics Papers: this item is included in nep-afr and nep-pbe
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http://repec.mandela.ac.za/RePEc/mnd/wpaper/paper.1818.pdf First version, 2018 (application/pdf)
Working Paper: The impact of Taxation on Economic Growth in South Africa (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:mnd:wpaper:1818
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