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In: Ekonomický časopis/Journal of Economics, vol. 65, no. 5
Maja Grdinić - Saša Drezgić - Helena Blažić

An Empirical Analysis of the Relationship between Tax Structures and Economic Growth in CEE Countries

Details:

Year, pages: 2017, 426 - 447
Keywords: tax structure, economic growth, Central and Eastern Europe, Pooled Mean Group Estimator JEL Classification: H10, H21, O47, O52
Article type: Vedecký / Article

About article:

This paper investigates the relationship between tax structures and eco-nomic growth in selected CEE countries in the period from 1990 to 2010. The research basis on the data for 20 selected countries (EU-13 and selected former Soviet Union countries and Albania). We obtain empirical results by using the Pooled Mean Group estimator (PMG). The analysis focuses on the impact of structure of taxes on economic growth. All regressions contain the overall tax burden represented as a share of total tax revenues in GDP. The results show that all tax forms have a negative impact on economic growth. Personal income taxes proved to have the highest negative impact on economic growth, followed by corporate income taxes and property taxes, which had the least negative impact. Consumption taxes showed to be statistically insignificant. Furthermore, the results indicate a significantly different impact observed countries’ tax structures had on economic growth to that of previous research on the dataset of OECD developed industrial countries.

This paper investigates the relationship between tax structures and eco-nomic growth in selected CEE countries in the period from 1990 to 2010. The research basis on the data for 20 selected countries (EU-13 and selected former Soviet Union countries and Albania). We obtain empirical results by using the Pooled Mean Group estimator (PMG). The analysis focuses on the impact of structure of taxes on economic growth. All regressions contain the overall tax burden represented as a share of total tax revenues in GDP. The results show that all tax forms have a negative impact on economic growth. Personal income taxes proved to have the highest negative impact on economic growth, followed by corporate income taxes and property taxes, which had the least negative impact. Consumption taxes showed to be statistically insignificant. Furthermore, the results indicate a significantly different impact observed countries’ tax structures had on economic growth to that of previous research on the dataset of OECD developed industrial countries.

How to cite:

ISO 690:
Grdinić, M., Drezgić, S., Blažić, H. 2017. An Empirical Analysis of the Relationship between Tax Structures and Economic Growth in CEE Countries. In Ekonomický časopis/Journal of Economics, vol. 65, no.5, pp. 426-447. ISSN 0013-3035.

APA:
Grdinić, M., Drezgić, S., Blažić, H. (2017). An Empirical Analysis of the Relationship between Tax Structures and Economic Growth in CEE Countries. Ekonomický časopis/Journal of Economics, 65(5), 426-447. ISSN 0013-3035.