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The Analysis Of The Economic Impact Of Vat On The Economic Growth In Southern Europe

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  • COSMINA-ȘTEFANIA CHIRICU

    (The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, Bucharest, 010374 Romania)

Abstract

The Southern Region of Europe is economically well-developed with highly industrialized urban areas and with great agricultural potential. The empirical analysis is based on an econometric assessment that measures the impact of the VAT on the rate of economic growth for years between 1996 and 2017. The empirical evidence highlighted a significant positive impact of VAT on economic growth, but a poor and ineffective use of the tax revenues during the period under review. Moreover, evidence revealed relatively high rates of VAT in the countries analyzed, with negative impact on the aggregate consumption and a diminishing effect of the consumer’s income.

Suggested Citation

  • Cosmina-ȘTefania Chiricu, 2019. "The Analysis Of The Economic Impact Of Vat On The Economic Growth In Southern Europe," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 24, pages 47-56, December.
    • Handle: RePEc:aic:revebs:y:2019:j:24:chiricuc
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    References listed on IDEAS

    as
    1. Engen, Eric M. & Skinner, Jonathan, 1996. "Taxation and Economic Growth," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(4), pages 617-642, December.
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    3. Madsen, J & Damania, D, 1996. "The Macroeconomic Effects of a Switch from Direct to Indirect Taxes: An Empirical Assessment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(5), pages 566-578, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    indirect taxes; panel data regression; VAT; economic growth rate.;
    All these keywords.

    JEL classification:

    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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