IDEAS home Printed from https://ideas.repec.org/a/asi/ajemod/v6y2018i1p65-73id302.html
   My bibliography  Save this article

Personal Income Tax and Economic Growth: A Comparative Study Between China and Pakistan

Author

Listed:
  • Azka Amin
  • Yan Chen
  • Shaoan Huang

Abstract

The present study explores the relationship between personal income tax and economic growth in China and Pakistan. For empirical analysis, bivariate and multivariate Granger causality frameworks have been utilized. The results do not support bivariate framework because it omit main variables. Then four important additional variables were introduced in multivariate framework to capture the country specific effect. The results under multivariate framework conclude there exist long-run positive unidirectional causality from personal income tax to real gross domestic product per capita (RGDPPC). The results showed that personal income tax, trade openness, inflation has positive while dependency ratio and agriculture has negative relation with economic growth for Pakistan while for China personal income tax, trade openness and agriculture sector has positive while inflation and dependency ratio shows negative relationship. Speed of adjustment predicts that system will move to equilibrium rapidly while diagnostic tests approve the perfectness of the model.

Suggested Citation

  • Azka Amin & Yan Chen & Shaoan Huang, 2018. "Personal Income Tax and Economic Growth: A Comparative Study Between China and Pakistan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(1), pages 65-73.
    • Handle: RePEc:asi:ajemod:v:6:y:2018:i:1:p:65-73:id:302
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5009/article/view/302/549
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5009/article/view/302/2533
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mkadmi, Jamel Eddine & Bakari, Sayef & Msai, Achwak, 2021. "Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis," MPRA Paper 109023, University Library of Munich, Germany.
    2. Dramane, Abdoulaye, 2022. "The Nexus between Military Spending, Tax Revenues and Economic Growth in the G5 Sahel Countries," African Journal of Economic Review, African Journal of Economic Review, vol. 10(2), March.
    3. Temel Gurdal & Mucahit Aydin & Veysel Inal, 2021. "The relationship between tax revenue, government expenditure, and economic growth in G7 countries: new evidence from time and frequency domain approaches," Economic Change and Restructuring, Springer, vol. 54(2), pages 305-337, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajemod:v:6:y:2018:i:1:p:65-73:id:302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5009/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.