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Analyzing taxation's impact on economic growth: a comparative study across EU-27

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  • Florina Popa

    (Institute of National Economy, Romanian Academy, Bucharest, Romania)

Abstract

The paper aims to: a) identify the relationship between the different types of taxes and economic growth, through the opinions of some specialists in the field; b) analyze the evolution of tax revenues, at the level of the EU-27 and Romania average, against the EU-27 average, by basic categories of taxation-labour, capital, consumption ; c) analysis of the evolution of each category of tax income (labour,consumption, capital) at EU-27 level and of Romania's tax revenues, respectively, in relation to the corresponding level of EU-27 and with that of the European Union countries. The data analysed as well as the results were expressed in relation to GDP, as well as a share of total tax revenues, over a period of thirteen years. (2009-2021) The motivation of the study is given by the interest it presents some aspects regarding: the impact of different types of tax revenues on growth and implications in the economy; the evolution of tax revenues of Romania and some countries, relevant by analysis data, compared to the EU 27 average, by categories of taxes-labour, consumption, capital - to know, depending on the level of tax revenues, the position of the different Member States against the EU-27 average, as well as that on which Romania is situated towards the EU countries. The method used in the study was research from foreign and domestic literature, processing of ideas through the author's own interpretation, collection of statistical databases, analysis of announced elements, in order to highlight the results obtained. The results obtained are reflected in the findings from the study on the distribution and evolution of tax revenues, depending on the type of tax base, for the EU-27 countries and Romania's position compared to the European Union countries (EU-27), respectively. The originality of the work is given by the very theme approached in the study and the results obtained.

Suggested Citation

  • Florina Popa, 2025. "Analyzing taxation's impact on economic growth: a comparative study across EU-27," Romanian Journal of Economics, Institute of National Economy, vol. 60(1(69)), pages 143-161, June.
    • Handle: RePEc:ine:journl:v:60:y:2025:i:69:p:143-161
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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