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

Abstract: 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
Date: 2018-05
New Economics Papers: this item is included in nep-afr and nep-pbe
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Citations: View citations in EconPapers (13)

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http://repec.mandela.ac.za/RePEc/mnd/wpaper/paper.1818.pdf First version, 2018 (application/pdf)
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Working Paper: The impact of Taxation on Economic Growth in South Africa (2018)
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