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Tax Structure And Economic Growth: Do Differences In Income Level And Government Effectiveness Matter?

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  • HALIT YANIKKAYA

    (Department of Economics, Gebze Technical University, 41400, Gebze/Kocaeli, Turkey)

  • TANER TURAN

    (Department of Economics, Gebze Technical University, 41400, Gebze/Kocaeli, Turkey)

Abstract

We examine the effects of both overall tax rate and changes in tax structure on growth by using data for more than 100 high, middle, and low income countries by employing the GMM estimation methods. In general, our results do not support the argument that overall tax rates or changes in tax structure have a significant effect on growth. However, we find that a shift from income to consumption and property taxes leads to a positive and significant effect on growth rate while a shift from consumption and property taxes to income taxes has a positive effect for low-income countries.

Suggested Citation

  • Halit Yanikkaya & Taner Turan, 2020. "Tax Structure And Economic Growth: Do Differences In Income Level And Government Effectiveness Matter?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(01), pages 217-237, March.
    • Handle: RePEc:wsi:serxxx:v:65:y:2020:i:01:n:s0217590818500170
    DOI: 10.1142/S0217590818500170
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    Cited by:

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    3. Le, Thai-Ha & Bui, Manh-Tien & Uddin, Gazi Salah, 2022. "Economic and social impacts of conflict: A cross-country analysis," Economic Modelling, Elsevier, vol. 115(C).
    4. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role of Government Effectiveness in the Light of ESG Data at Global Level," MPRA Paper 115998, University Library of Munich, Germany.

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    More about this item

    Keywords

    Taxation; growth; tax structure; government effectiveness; dynamic panel data;
    All these keywords.

    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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