Munich Personal RePEc Archive

The Impact of Tax Revenues and Domestic Investments on Economic Growth in Tunisia

Mkadmi, Jamel Eddine and Bakari, Sayef and Othmani, Ameni (2021): The Impact of Tax Revenues and Domestic Investments on Economic Growth in Tunisia.

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Abstract

The aim of this work is to study the impact of tax revenues and domestic investments on social and economic well-being in Tunisia over the period 1976 – 2018. This study is based on co-integration analysis and Vector Error Correction Model. Empirical results indicate that in the long run domestic investment has a negative impact on economic growth, while the impact of tax revenues is positive. Also, results indicate that domestic investment and economic growth influence positively tax revenues. However, Tax revenue and economic growth don’t have any effect on domestic investment in the long run. It is seen that in Tunisia the strategy policy of tax revenue is not safe for domestic investment and the strategy policy of domestic investment is not safe for economic growth. Therefore, we should encourage immediate intervention to take the necessary measures before the situation causes a greater disaster.

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