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What Is the Impact of Value Added Tax on GDP in Romania and Bulgaria?

In: Innovative Business Development—A Global Perspective

Author

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  • Ana-Maria Urîţescu

    (The Bucharest University of Economic Studies)

Abstract

The objective of this study is to analyze the link between value added tax and gross domestic product in Romania and Bulgaria. The econometric techniques used are cointegration technique, autoregressive vector (VAR) and Granger causality. The data used are quarterly. These are between 1999 Q1 and 2017 Q3. The VAR results indicate a strong link between the data series for both Romania and Bulgaria. The results of the Granger test applied to the VAR model indicate a unidirectional link from GDP to VAT for Romania, while in Bulgaria there is no correlation between the current GDP value and the past VAT values.

Suggested Citation

  • Ana-Maria Urîţescu, 2018. "What Is the Impact of Value Added Tax on GDP in Romania and Bulgaria?," Springer Proceedings in Business and Economics, in: Ramona Orăștean & Claudia Ogrean & Silvia Cristina Mărginean (ed.), Innovative Business Development—A Global Perspective, pages 373-385, Springer.
  • Handle: RePEc:spr:prbchp:978-3-030-01878-8_32
    DOI: 10.1007/978-3-030-01878-8_32
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