The impact of Taxation on Economic Growth in South Africa

Dladla, Khumbuzile and Khobai, Hlalefang (2018): The impact of Taxation on Economic Growth in South Africa.

Abstract

This paper investigates the impact of taxation on economic growth in South Africa. Yearly data for South Africa for the period 1981 – 2016 was used to develop the Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a negative relationship between taxes and economic growth in South Africa. The findings of the study include that economic growth, trade and openness, capital and taxes are co-integrated. This paper suggests that fiscal policy is very important to force sustainable economic growth in South Africa

• Item Type: MPRA Paper
• Language: English
• Keywords: Taxation, Economic growth, Auto-regression Distribution Lag Model (ARDL), Co-integration, South Africa
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E27 - Forecasting and Simulation: Models and Applications; H - Public Economics > H2 - Taxation, Subsidies, and Revenue

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