Advanced Empirical Research Based on Structural Equation Modeling (SEM) Regarding the Impact of Tax Revenue on GDP Dynamics at EU-28 Level
Advanced Empirical Research Based on Structural Equation Modeling (SEM) Regarding the Impact of Tax Revenue on GDP Dynamics at EU-28 Level
Author(s): Cristi Spulbăr, Mohammad Ehsanifar, Ramona Birău, Arezoo Babaie, Daniel Iulius DoagăSubject(s): Economy, Public Finances
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: taxation; structural equation modeling (SEM); economic growth; fiscal policy; GDP; regression analysis;
Summary/Abstract: The main objective of this empirical study is to investigate the impact of tax revenue on GDP dynamics at EU-28 level based on structural equation modeling (SEM). We applied structural equation modeling (SEM) which represents a multivariate statistical analysis technique used especially for analyzing structural relationships between measured variables and latent structures. Selected taxes are the following: environmental taxes, indirect taxes, social contributions, taxes on capital, taxes on labor, taxes on property, and direct taxes. The sample period includes a long-time horizon during 2005-2017 for each member states of EU-28. Our empirical findings revealed the level of taxation exhibits an increased influence on GDP dynamics in case of EU-28 member states.
Journal: Scientific Annals of Economics and Business
- Issue Year: 68/2021
- Issue No: 3
- Page Range: 285-307
- Page Count: 23
- Language: English