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:	https://ir.uitm.edu.my/id/eprint/16328/1/ABS_TAUFIK%20ABD%20HAKIM%20VOL%207%20IGS%2015.pdf
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id	my-uitm-ir.16328
record_format	uketd_dc
spelling	my-uitm-ir.163282018-10-02T03:59:47Z Modelling the impact of tax structure on economic indicators / Taufik Abd Hakim 2014 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 https://ir.uitm.edu.my/id/eprint/16328/ https://ir.uitm.edu.my/id/eprint/16328/1/ABS_TAUFIK%20ABD%20HAKIM%20VOL%207%20IGS%2015.pdf text en public phd doctoral Universiti Teknologi MARA Faculty of Business and Management
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
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
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
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
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Business and Management
publishDate	2014
url	https://ir.uitm.edu.my/id/eprint/16328/1/ABS_TAUFIK%20ABD%20HAKIM%20VOL%207%20IGS%2015.pdf
_version_	1783733505263403008

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

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