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The Correlation between Value Added Tax and Economic Growth in Romania

Author

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  • Ana Maria Uritescu

    () (The Bucharest University of Economic Studies)

Abstract

The study aims to investigate the relationship between the revenues collected from the VAT and the GDP in Romania, for the period of 1993-2016. The interest in studying this relationship derives from the importance gained by this tax over the years and from the actuality of the economic growth in Romania. The methods used are: estimating a regression model and estimating the autoregressive vector model using Eviews 9. The regression model has the gross domestic as a dependent variable and as an independent variable the revenues from the VAT. The results obtained from the analysis indicates that there is a positive and direct relationship between the two variables and the variation of the GDP is explained by the revenues from the VAT

Suggested Citation

  • Ana Maria Uritescu, 2017. "The Correlation between Value Added Tax and Economic Growth in Romania," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 5(1), pages 29-38, March.
  • Handle: RePEc:hyp:journl:v:5:y:2017:i:1:p:29-38
    as

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    References listed on IDEAS

    as
    1. Alesina, Alberto Francesco & Ardagna, Silvia, 2010. "Large Changes in Fiscal Policy: Taxes versus Spending," Scholarly Articles 22801844, Harvard University Department of Economics.
    2. Alberto Alesina & Roberto Perotti, 1996. "Fiscal Adjustments in OECD Countries; Composition and Macroeconomic Effects," IMF Working Papers 96/70, International Monetary Fund.
    3. Perotti, Roberto, 2005. "Estimating the Effects of Fiscal Policy in OECD Countries," CEPR Discussion Papers 4842, C.E.P.R. Discussion Papers.
    4. Roberto Perotti, 2005. "Estimating the effects of fiscal policy in OECD countries," Proceedings, Federal Reserve Bank of San Francisco.
    5. Gustavo Canavire-Bacarreza & Jorge Martínez-Vázquez & Violeta Vulovic, 2013. "Taxation and Economic Growth in Latin America," IDB Publications (Working Papers) 4583, Inter-American Development Bank.
    6. Gustavo Canavire-Bacarreza & Jorge Martínez-Vázquez & Violeta Vulovic, 2013. "Taxation and Economic Growth in Latin America," IDB Publications (Working Papers) 81798, Inter-American Development Bank.
    7. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
    8. Alberto Alesina & Silvia Ardagna, 2010. "Large Changes in Fiscal Policy: Taxes versus Spending," NBER Chapters,in: Tax Policy and the Economy, Volume 24, pages 35-68 National Bureau of Economic Research, Inc.
    9. Alberto Alesina & Roberto Perotti, 1996. "Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects," NBER Working Papers 5730, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    VAT; economic growth; autoregressive vector; Granger causality;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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