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The Causality Relationship Between Tax Revenues and Gross Domestic Product in the Republic of Croatia

In: Financije teorija i suvremena pitanja = Finance - theory and contemporary issues

Author

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  • Sabina Hodžić

    (University of Rijeka, Faculty of Tourism and Hospitality Management)

Abstract

As a member state of the European Union, the Republic of Croatia must pay particular attention to all aspects of their fiscal relations with the European Union. This includes legal adjustments within the fiscal policy as well as the implementation and funding of certain programmes. The aim of this paper is to investigate the causality relationship between and the influence of total tax revenues on the gross domestic product of the Republic of Croatia in the period between 2005 and 2015. The ordinary least squares method was used to demonstrate the dependence of gross domestic product, as well as of final consumption and export of goods and services, on tax revenues in the Republic of Croatia in the period considered. Based on research results, it is concluded that the dependence of gross domestic product on tax revenues is not sustainable in the long term when it comes to the country’s growth and development.

Suggested Citation

  • Sabina Hodžić, 2018. "The Causality Relationship Between Tax Revenues and Gross Domestic Product in the Republic of Croatia," Occasional Publications, in: Financije teorija i suvremena pitanja = Finance - theory and contemporary issues, edition 1, volume 1, chapter 2, pages 21-39, Josip Juraj Strossmayer University of Osijek, Faculty of Economics.
    • Handle: RePEc:osi:chaptr:18-02
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    More about this item

    Keywords

    fiscal policy; tax revenues; gross domestic product; Republic of Croatia;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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