The relationship between taxes and economic growth: evidence from Serbia and Croatia
Sažetak
This study presents an empirical analysis of taxes and economic growth
in Serbia and Croatia in the period 2007-2016. In order to identify the
impact of tax forms on economic growth and their relationship, the
authors decided to set up a panel regression where gross domestic
product is the dependent variable, while corporate income tax, value
added tax, social security contributions and excises are independent
variables. The results of random effect model have shown that corporate
income tax, value added tax and social security contributions have a
positive impact on the gross domestic product, while excises affect the
gross domestic product negatively. However, only value added tax has
a statistically significant impact on economic growth in these countries,
with each increase in revenue from this tax contributing to the growth
of gross domestic product in the observed period.
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