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The effect of value add tax on economic growth and its sources in developing countries

Today the role of economic growth for its effect on social welfare is undeniable. For this reason, the factors influencing the economic growth are taken into account by policy makers and researchers. On the other hand, the VAT has been considered by most of the countries due to its numerous advantag...

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Main Authors: Kolahi, Seyed Hossein Ghaffarian, Mohd Noor, Zaleha
Format: Article
Language:English
Published: Canadian Center of Science and Education 2016
Online Access:http://psasir.upm.edu.my/id/eprint/52988/1/The%20effect%20of%20value%20add%20tax%20on%20economic%20growth%20and%20its%20sources%20in%20developing%20countries.pdf
http://psasir.upm.edu.my/id/eprint/52988/
http://www.ccsenet.org/ijef
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spelling my.upm.eprints.529882017-11-20T07:48:19Z http://psasir.upm.edu.my/id/eprint/52988/ The effect of value add tax on economic growth and its sources in developing countries Kolahi, Seyed Hossein Ghaffarian Mohd Noor, Zaleha Today the role of economic growth for its effect on social welfare is undeniable. For this reason, the factors influencing the economic growth are taken into account by policy makers and researchers. On the other hand, the VAT has been considered by most of the countries due to its numerous advantages and benefits. Hence, investigating how this type of tax affects the economic growth seems to be indispensable, particularly in developing countries. In this study, the effect of value added tax on economic growth was examined especially on the developing countries. In details, the effects of VAT on the economic growth of 19 developing countries for duration of 1995 to 2010 were investigated. For analysing the data, the GMM panel was employed because of the structure of the model. Afterwards, the effect of VAT through the channel of saving on the capital accumulation and productivity and ultimately the economic growth was examined. The results revealed that VAT has a negative effect on capital accumulation growth in the level; the positive effect of VAT on the level of economic growth seems to have been imposed through channels other than the increase of saving and its effect on capital accumulation. Canadian Center of Science and Education 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/52988/1/The%20effect%20of%20value%20add%20tax%20on%20economic%20growth%20and%20its%20sources%20in%20developing%20countries.pdf Kolahi, Seyed Hossein Ghaffarian and Mohd Noor, Zaleha (2016) The effect of value add tax on economic growth and its sources in developing countries. International Journal of Economics and Finance, 8 (1). pp. 217-228. ISSN 1916-971X; ESSN: 1916-9728 http://www.ccsenet.org/ijef 10.5539/ijef.v8n1p217
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Today the role of economic growth for its effect on social welfare is undeniable. For this reason, the factors influencing the economic growth are taken into account by policy makers and researchers. On the other hand, the VAT has been considered by most of the countries due to its numerous advantages and benefits. Hence, investigating how this type of tax affects the economic growth seems to be indispensable, particularly in developing countries. In this study, the effect of value added tax on economic growth was examined especially on the developing countries. In details, the effects of VAT on the economic growth of 19 developing countries for duration of 1995 to 2010 were investigated. For analysing the data, the GMM panel was employed because of the structure of the model. Afterwards, the effect of VAT through the channel of saving on the capital accumulation and productivity and ultimately the economic growth was examined. The results revealed that VAT has a negative effect on capital accumulation growth in the level; the positive effect of VAT on the level of economic growth seems to have been imposed through channels other than the increase of saving and its effect on capital accumulation.
format Article
author Kolahi, Seyed Hossein Ghaffarian
Mohd Noor, Zaleha
spellingShingle Kolahi, Seyed Hossein Ghaffarian
Mohd Noor, Zaleha
The effect of value add tax on economic growth and its sources in developing countries
author_facet Kolahi, Seyed Hossein Ghaffarian
Mohd Noor, Zaleha
author_sort Kolahi, Seyed Hossein Ghaffarian
title The effect of value add tax on economic growth and its sources in developing countries
title_short The effect of value add tax on economic growth and its sources in developing countries
title_full The effect of value add tax on economic growth and its sources in developing countries
title_fullStr The effect of value add tax on economic growth and its sources in developing countries
title_full_unstemmed The effect of value add tax on economic growth and its sources in developing countries
title_sort effect of value add tax on economic growth and its sources in developing countries
publisher Canadian Center of Science and Education
publishDate 2016
url http://psasir.upm.edu.my/id/eprint/52988/1/The%20effect%20of%20value%20add%20tax%20on%20economic%20growth%20and%20its%20sources%20in%20developing%20countries.pdf
http://psasir.upm.edu.my/id/eprint/52988/
http://www.ccsenet.org/ijef
_version_ 1643835308757745664
score 13.211869

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