If France continues this strategy, taxes will destroy domestic investment and economic growth
Sayef Bakari ()
MPRA Paper from University Library of Munich, Germany
The aim of this article is to study empirically the nexus between tax revenue, domestic investment and economic growth in France, since it's never been done before. In addition, there were many problems and repercussions that criticized France's tax policy and its danger to the economic structure, which encourages us to do this research. To attempt this objective, annual data for the period 1972 - 2016 was tested by using correlation analysis and estimation based on vector error correction model. Our results suggest that in the long run there is a negative relationship between tax revenue, domestic investment and economic growth. It is seen that the strategy tax policy of France is not safe for domestic investment and economic growth. For this reason, immediate intervention should be encouraged to carry out the necessary measures before the situation becomes more disastrous.
Keywords: Tax revenue; Domestic investment; Economic Growth; France (search for similar items in EconPapers)
JEL-codes: E62 H21 O47 O52 (search for similar items in EconPapers)
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Working Paper: If France continues this strategy, taxes will destroy domestic investment and economic growth (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89011
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