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The impact of Taxation on Economic Growth in South Africa

Khumbuzile Dladla and Hlalefang Khobai

MPRA Paper from University Library of Munich, Germany

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: C2 E27 H2 (search for similar items in EconPapers)
Date: 2018-04-15
New Economics Papers: this item is included in nep-mac, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Working Paper: The impact of taxation on economic growth in South Africa (2018) Downloads
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