Sameti M, Tayyebi K, Heydari S. The Effect of Government Revenues Growth on Inflation and Real Economic Growth in Iran (1959-2007). J Tax Res 2008; 16 (2) :176-193
URL:
http://taxjournal.ir/article-1-165-en.html
1- Associate Professor of Economics at The University of Isfahan
2- M.A. in Economics
Abstract: (11514 Views)
The scope and diversity of government activities to achieve economic
targets have led to a condition where taxes are now paid more
attention and are considered to function as an important economic
instrument. The governments can utilize this instrument to finance
some part of their expenditures, but due to the Iran's economy’s
dependence on oil revenues, tax revenues form only a small fraction of
the Iranian government revenues. The present research aims at
examining the effect of tax revenues growth on such macroeconomic
indicators as inflation and real economic growth. The role of oil
revenues is also paid attention. This research, as a case study, uses
simultaneous equations system to examine the Iranian data of the
years 1959-2007. A two-stage least square method was used to
estimate the equations. The final form of the model consists of four
equations including inflation rate, real economic growth rate, real
growth rate of the government revenues and real growth rate of
investment equations. Results show that real growth rate of the
government tax revenues doesn't have any significant effects on real
growth rate of economy but it has significant negative effects on the
inflation rate.
Type of Study:
Research |
Received: 2008/06/8 | Accepted: 2008/09/15 | Published: 2014/03/14