The Impact of Tax Revenues and Domestic Investments on Economic Growth in Tunisia

Jamel Eddine Mkadmi, Sayef Bakari and Ameni Othmani

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this work is to study the impact of tax revenues and domestic investments on social and economic well-being in Tunisia over the period 1976 – 2018. This study is based on co-integration analysis and Vector Error Correction Model. Empirical results indicate that in the long run domestic investment has a negative impact on economic growth, while the impact of tax revenues is positive. Also, results indicate that domestic investment and economic growth influence positively tax revenues. However, Tax revenue and economic growth don’t have any effect on domestic investment in the long run. It is seen that in Tunisia the strategy policy of tax revenue is not safe for domestic investment and the strategy policy of domestic investment is not safe for economic growth. Therefore, we should encourage immediate intervention to take the necessary measures before the situation causes a greater disaster.

Keywords: Tax revenue; Domestic investment; Economic growth, Tunisia (search for similar items in EconPapers)
JEL-codes: E62 H21 H26 O47 O55 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-ara, nep-fdg, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:108387

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