Journal of Economic Development, T. 24, S. 3 (2017)

Cỡ chữ:  Nhỏ  Vừa  Lớn

Tax revenue, expenditure, and economic growth: An analysis of long-run relationships

NGUYEN PHUONG LIEN, SU DINH THANH

Tóm tắt


Focusing on the investigation of “long-term” relationship between tax revenue, expenditure, and economic growth, this paper employs the Granger causality test and finds that the linkage between tax revenue and spending is a bi-directional causal correlation. Furthermore, applying Persyn and Westerlund’s (2008) co-integration test allows for corroboration of existence of long-run cointegration linkages among outcome of economy and the three variables. In addition, by adopting two-step system generalized method of moments (SGMM) for a dynamic panel of 82 developed and developing countries during 16-year period (2000–2015), this research demonstrates that the impact of tax revenue and spending is substantial and ambiguous, depending on different groups of economies.



University of Economics HCMC

JOURNAL OF ECONOMIC DEVELOPMENT

ISSN: 1859-1116