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Macroeconomic indicators of determination on tax behaviour of OECD countries

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  • Sokolovskyi, Dmytro

Abstract

The article deals with investigation of principles, factors and conditions of the government’s tax behavior, notably by means of changing the tax burden. We define a set of potential indicators of the economic efficiency, based on GDP and FDI, nominal and per capita, as well as the ratio of FDI to GDP. By using the statistical analysis techniques we found the statistical dependence between government’s behavior and each of the selected indicators. We argued that the factor GDP per capita has the biggest impact on the government’s tax decisions. Also it showed that the governments mostly act as satisfiers. The obtained results allow to understand the principles of governments’ decision-making, and, therefore, to forecast in some way their behavior in certain economic conditions. Moreover, it could help to understand the reasons why the “race to the bottom” situation appears. The present paper differs from previous studies both by the topic, studying the relations between government’s tax behavior and efficiency of countries economies and by the approach to define this dependence, since the latest can be observed only when each variant of government’s tax reaction is analyzed separately.

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  • Sokolovskyi, Dmytro, 2018. "Macroeconomic indicators of determination on tax behaviour of OECD countries," MPRA Paper 84002, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:84002
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    1. Sokolovskyi, Dmytro, 2019. "Cumulative analysis of dependence government tax behaviour on economy’s efficiency factors for totality the world countries," MPRA Paper 95827, University Library of Munich, Germany.
    2. Azeem Mujahid & Danish Ahmed Siddiqui, 2019. "The Effect of Tax Amnesties Programs on Tax Collection and Economic Performance: A Global Macro Economic Analysis," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 4(2), pages 108-128, June.
    3. Sokolovskyi, Dmytro, 2021. "Is tax competition necessarily a Race to the bottom? Optimal tax rate trajectories in the model of tax competition for different objective functions," MPRA Paper 109284, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic efficiency; tax burden; tax behavior; satisfier; CIT; GDP; FDI; per capita;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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