Original scientific paper

INTERDEPENDENCE OF TAXATION AND ECONOMIC GROWTH IN CROATIA

Hrvoje Šimović

Abstract

The paper analyzes the interdependence between the taxation and the economic growth. The recent literature and professional public suggests the idea of stimulating economic activity through the various tax incentives. Because of this fact the main goal of this paper is to identify if there is a significant relation between the taxation and the economic growth. Besides the literature review and theoretical approach of taxation influence on economic growth, the paper consist the econometric analysis of the correlation between the taxation and the economic growth in Croatia. In the first part the regression analysis is used to confirm the significant taxation-economic growth relation. In the second part the vector auto-regression (VAR) model is used to explore the interaction of taxation and economic growth in Croatia.

Keywords

taxation; economic growth; Croatia

Hrčak ID:

38196

URI

https://hrcak.srce.hr/38196

Publication date:

15.3.2009.

Article data in other languages: croatian

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