Original scientific paper
https://doi.org/10.1080/1331677X.2017.1305789
Taxation, growth and the stock traded nexus in emerging Asian countries: heterogeneous and semi-parametric panel estimates
Nanthakumar Loganathan
Roshaiza Taha
Norsiah Ahmad
Thirunaukarasu Subramaniam
Abstract
This study attempts to investigate the impact of economic growth
and stock traded on taxation for emerging Asian countries, namely
China, India, Indonesia, Republic of Korea, Malaysia and Thailand. To
examine the plausible links between these indicators, we used semiparametric,
heterogeneous and panel causality analysis by employing
data covering the period 1990–2014. The semi-parametric estimates
indicate a U-shape effect between growth and taxation, along with
elastic opposite direction effects of stock traded on taxation. This
suggests that higher growth will have a positive influence on taxation
in emerging Asian countries. The findings of the Dumitrescu and
Hurlin (DH) heterogeneous Granger causality test revealed that there
is a bi-directional causality running between growth and taxation, and
a uni-directional causality running from stock traded to taxation,and
from growth to stock traded.This confirms the presence of a growthled
taxation nexus in emerging Asian countries.
Keywords
Economic growth; semiparametric panel; stock traded; taxation
Hrčak ID:
180892
URI
Publication date:
1.12.2017.
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