ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES
The study aims to identify and empirically analyze the impact of direct tax and indirect tax revenues on economic growth in the transition countries of Southeast Europe, based on panel data for the period 2005-2019. Factors that are included in the study as independent variables are direct tax and...
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| Format: | Article |
| Language: | English |
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Institute for Research and European Studies
2023-12-01
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| Series: | Journal of Liberty and International Affairs |
| Subjects: | |
| Online Access: | https://www.e-jlia.com/index.php/jlia/article/view/1194 |
| _version_ | 1797371538901565440 |
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| author | Luljeta Gllogjani Esat Durguti |
| author_facet | Luljeta Gllogjani Esat Durguti |
| author_sort | Luljeta Gllogjani |
| collection | DOAJ |
| description |
The study aims to identify and empirically analyze the impact of direct tax and indirect tax revenues on economic growth in the transition countries of Southeast Europe, based on panel data for the period 2005-2019. Factors that are included in the study as independent variables are direct tax and indirect tax revenues. In contrast, the dependent variable is defined as the annual GDP growth in percentage, an indicator of economic growth. The econometric approach is OLS regression analysis, random effects regression, and fixed effects regression. The model’s reliability has been tested by applying diagnostic tests, such as autocorrelation, normal distribution, and heteroscedasticity. Moreover, the result of the Breusch and Pagan Lagrangian multiplier and Hausman test suggests that the adequate model is a regression with fixed effects. Therefore, the findings with a regression with fixed effects confirm that the revenues from indirect taxes resulted in a positive and statistically significant effect. In contrast, direct tax revenues did not significantly affect economic growth but resulted in a positive sign. The analysis through the econometric model enabled the achievement of the aims set in this paper and the achievement of the final goal, providing observed evidence that the role of tax policy is crucial to encouraging economic growth.
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| first_indexed | 2024-03-08T18:21:20Z |
| format | Article |
| id | doaj.art-13f1a1ddf35b49f191cd2a42624c0f72 |
| institution | Directory Open Access Journal |
| issn | 1857-9760 |
| language | English |
| last_indexed | 2024-03-08T18:21:20Z |
| publishDate | 2023-12-01 |
| publisher | Institute for Research and European Studies |
| record_format | Article |
| series | Journal of Liberty and International Affairs |
| spelling | doaj.art-13f1a1ddf35b49f191cd2a42624c0f722023-12-30T19:15:43ZengInstitute for Research and European StudiesJournal of Liberty and International Affairs1857-97602023-12-019310.47305/JLIA2393121gESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIESLuljeta Gllogjani0Esat Durguti1Faculty of Economics, University of Prishtina “Hasan Prishtina”, Kosovo University “Isa Boletini”, Faculty of Economics - Mitrovica, Kosovo The study aims to identify and empirically analyze the impact of direct tax and indirect tax revenues on economic growth in the transition countries of Southeast Europe, based on panel data for the period 2005-2019. Factors that are included in the study as independent variables are direct tax and indirect tax revenues. In contrast, the dependent variable is defined as the annual GDP growth in percentage, an indicator of economic growth. The econometric approach is OLS regression analysis, random effects regression, and fixed effects regression. The model’s reliability has been tested by applying diagnostic tests, such as autocorrelation, normal distribution, and heteroscedasticity. Moreover, the result of the Breusch and Pagan Lagrangian multiplier and Hausman test suggests that the adequate model is a regression with fixed effects. Therefore, the findings with a regression with fixed effects confirm that the revenues from indirect taxes resulted in a positive and statistically significant effect. In contrast, direct tax revenues did not significantly affect economic growth but resulted in a positive sign. The analysis through the econometric model enabled the achievement of the aims set in this paper and the achievement of the final goal, providing observed evidence that the role of tax policy is crucial to encouraging economic growth. https://www.e-jlia.com/index.php/jlia/article/view/1194Economic GrowthDirect TaxesIndirect TaxesPanel Data |
| spellingShingle | Luljeta Gllogjani Esat Durguti ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES Journal of Liberty and International Affairs Economic Growth Direct Taxes Indirect Taxes Panel Data |
| title | ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES |
| title_full | ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES |
| title_fullStr | ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES |
| title_full_unstemmed | ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES |
| title_short | ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES |
| title_sort | estimating tax revenues on economic growth for southeast european countries |
| topic | Economic Growth Direct Taxes Indirect Taxes Panel Data |
| url | https://www.e-jlia.com/index.php/jlia/article/view/1194 |
| work_keys_str_mv | AT luljetagllogjani estimatingtaxrevenuesoneconomicgrowthforsoutheasteuropeancountries AT esatdurguti estimatingtaxrevenuesoneconomicgrowthforsoutheasteuropeancountries |