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Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis

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  • Mkadmi, Jamel Eddine
  • Bakari, Sayef
  • Msai, Achwak

Abstract

The present paper aims to investigate the impact of tax policy on economic growth in Tunisia over the period 1995 - 2020, by using cointegration analysis and Autoregressive Distributed Lag (ARDL). To explain tax policy, we use tax revenue and degree of fiscal freedom. Empirical results mark that in the long run tax revenue and degree of fiscal freedom has a positive impact on economic growth, while the impact of tax revenues is positive. Our findings provide evidence that tax policy is seen as a source of growth in Tunisia. From these results, we extract several basic policy conclusions.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:109023
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    Cited by:

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    4. Bakari, Sayef, 2022. "The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries," MPRA Paper 114323, University Library of Munich, Germany.

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    More about this item

    Keywords

    Tax Policy; Economic Growth; Tunisia; ARDL Model.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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