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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.

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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

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