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Analysis of the correlation between taxation indicators and economic growth at the macroeconomic level in European Union and Romania

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  • Cătălina MOTOFEI

    (The Bucharest University of Economic Studies, Romania)

Abstract

In this paper, the author attempts to verify, on the basis of a selected set of data, if the influence of the causal variables (taxation indicators), namely Taxes on production and imports less subsidies and Taxes less subsidies on products on the Gross Domestic Product falls under the category of Granger causalities, and the research hypotheses are defined accordingly. Since the variables were supposed to be, and actually found to be non-stationary, the chosen research method is based on the Toda-Yamamoto approach, adapted to the structure of the data. The results allow the validation of the hypotheses in a limited number of cases, the analysis aimed to test the causalities between the nominal values and, on the other hand, their elasticities.

Suggested Citation

  • Cătălina MOTOFEI, 2020. "Analysis of the correlation between taxation indicators and economic growth at the macroeconomic level in European Union and Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(625), W), pages 43-54, Winter.
    • Handle: RePEc:agr:journl:v:4(625):y:2020:i:4(625):p:43-54
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    References listed on IDEAS

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    1. Alberto Alesina & Silvia Ardagna, 2010. "Large Changes in Fiscal Policy: Taxes versus Spending," NBER Chapters, in: Tax Policy and the Economy, Volume 24, pages 35-68, National Bureau of Economic Research, Inc.
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    4. Desislava Stoilova, 2017. "Tax structure and economic growth: Evidence from the European Union," Contaduría y Administración, Accounting and Management, vol. 62(3), pages 1041-1057, Julio-Sep.
    5. Aviral Tiwari & Mihai Mutascu, 2014. "A revisit on the tax burden distribution and GDP growth: fresh evidence using a consistent nonparametric test for causality for the USA," Empirical Economics, Springer, vol. 46(3), pages 961-972, May.
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