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Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim

This study attempts to investigate further the recent impact of tax structure on economic indicators in the different group of countries which are the low income, lower middle income, upper middle income and high income countries over the period 2000-2009 (early of modem era). Additionally, the gap...

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Main Author: Abd Hakim, Taufik
Format: Thesis
Language:English
Published: 2014
Online Access:http://ir.uitm.edu.my/id/eprint/16328/1/ABS_TAUFIK%20ABD%20HAKIM%20VOL%207%20IGS%2015.pdf
http://ir.uitm.edu.my/id/eprint/16328/
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spelling my.uitm.ir.163282018-10-02T03:59:47Z http://ir.uitm.edu.my/id/eprint/16328/ Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim Abd Hakim, Taufik This study attempts to investigate further the recent impact of tax structure on economic indicators in the different group of countries which are the low income, lower middle income, upper middle income and high income countries over the period 2000-2009 (early of modem era). Additionally, the gap between traditional schools of thought which believe that lower income tax rates generate economic growth, while modem schools of thought propagate that higher income tax rates produce economic growth especially for high income countries (Slemrod, 2003; Bonu and Pedro, 2009) motivate researcher to reveal the impact of taxes among group of countries. In this study, researcher specifies models to relate tax structure and economic indicators and estimates them using several advanced econometric approaches which are, 1) the Feasible Generalized Least Squares (FGLS), 2) Two Stage Instrumental Variables (2S-IV), 3) Fixed and Random Effects Instrumental Variables (FE/RE-IV) and, 4) Arellano-Bond Generalized Method of Moments (GMM) estimators. The general finding implies that taxation in lower middle income and upper middle income countries has burdened the economic growth, while for high income countries it has contributed to stimulate economic growth. These results are contrastive with previous studies on tax and support the theory of taxes by modern schools of thought. Evidences from developing countries suggest that total tax revenue (TAX); taxes on income, profits and capital gains (INCOMETX) and highest marginal tax rates (MTR) are highly significant and negatively related to the economic growth. In contrast, the results for high-income OECD countries show that INCOMETX and MTR are significant and positively related to the economic growth. Therefore, this study concludes that, inconsistent impact of taxes is due to the different optimum level of tax rates among the group of countries. 2014 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/16328/1/ABS_TAUFIK%20ABD%20HAKIM%20VOL%207%20IGS%2015.pdf Abd Hakim, Taufik (2014) Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim. PhD thesis, Universiti Teknologi MARA.
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
description This study attempts to investigate further the recent impact of tax structure on economic indicators in the different group of countries which are the low income, lower middle income, upper middle income and high income countries over the period 2000-2009 (early of modem era). Additionally, the gap between traditional schools of thought which believe that lower income tax rates generate economic growth, while modem schools of thought propagate that higher income tax rates produce economic growth especially for high income countries (Slemrod, 2003; Bonu and Pedro, 2009) motivate researcher to reveal the impact of taxes among group of countries. In this study, researcher specifies models to relate tax structure and economic indicators and estimates them using several advanced econometric approaches which are, 1) the Feasible Generalized Least Squares (FGLS), 2) Two Stage Instrumental Variables (2S-IV), 3) Fixed and Random Effects Instrumental Variables (FE/RE-IV) and, 4) Arellano-Bond Generalized Method of Moments (GMM) estimators. The general finding implies that taxation in lower middle income and upper middle income countries has burdened the economic growth, while for high income countries it has contributed to stimulate economic growth. These results are contrastive with previous studies on tax and support the theory of taxes by modern schools of thought. Evidences from developing countries suggest that total tax revenue (TAX); taxes on income, profits and capital gains (INCOMETX) and highest marginal tax rates (MTR) are highly significant and negatively related to the economic growth. In contrast, the results for high-income OECD countries show that INCOMETX and MTR are significant and positively related to the economic growth. Therefore, this study concludes that, inconsistent impact of taxes is due to the different optimum level of tax rates among the group of countries.
format Thesis
author Abd Hakim, Taufik
spellingShingle Abd Hakim, Taufik
Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim
author_facet Abd Hakim, Taufik
author_sort Abd Hakim, Taufik
title Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim
title_short Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim
title_full Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim
title_fullStr Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim
title_full_unstemmed Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim
title_sort modelling the impact of tax structure on economic indicators / taufik abd hakim
publishDate 2014
url http://ir.uitm.edu.my/id/eprint/16328/1/ABS_TAUFIK%20ABD%20HAKIM%20VOL%207%20IGS%2015.pdf
http://ir.uitm.edu.my/id/eprint/16328/
_version_ 1685648786035048448
score 13.211869

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