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The Influence Of Taxation On Economic Growth. Econometric Evidence From Romania

Author

Listed:
  • Camelia, MORARU

    (Academy of Economic Studies, Bucharest.)

  • Roxana, IONIŢĂ

    ("Dimitrie Cantemir" Christian University, Constanta)

Abstract

One of the most frequently discussed issues in economics is how tax rates affect economic growth. A number of studies have examined the effects of taxes on economic growth, however none of them concluded that through the application of higher taxes, economic growth occurs, but on the contrary, they emphasized the negative effects of taxation on growth. This paper is divided into two parts. The first part presents the theoretical studies on the impact of taxation on economic growth, while the second aims to test the influence of public revenues, especially distorsionary and nondistorsionary revenues, on growth in Romania. The second part contains a review of the evolution and structure of public revenues of Romanian economy and the econometric tests on the effects of these types of income on growth during 2006-2012, using multiple linear regression.

Suggested Citation

  • Camelia, MORARU & Roxana, IONIŢĂ, 2014. "The Influence Of Taxation On Economic Growth. Econometric Evidence From Romania," Management Strategies Journal, Constantin Brancoveanu University, vol. 26(4), pages 284-290.
    • Handle: RePEc:brc:journl:v:26:y:2014:i:4:p:284-290
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    References listed on IDEAS

    as
    1. Cardia, Emanuela & Kozhaya, Norma & Ruge-Murcia, Francisco J, 2003. "Distortionary Taxation and Labor Supply," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(3), pages 350-373, June.
    2. Christina D. Romer & David H. Romer, 2010. "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks," American Economic Review, American Economic Association, vol. 100(3), pages 763-801, June.
    3. Burgess, Robin & Stern, Nicholas, 1993. "Taxation and Development," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 762-830, June.
    4. Laura Obreja Brasoveanu & Iulian Brasoveanu, 2008. "The Correlation between Fiscal Policy and Economic Growth," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 7(7(524)), pages 19-26, July.
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    More about this item

    Keywords

    fiscal policy; growth; taxation; public revenues;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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