Growth-Enhancing Taxes

Publication | May 2024
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Tax revenues have a persistent positive impact on growth, and the association is especially pronounced in emerging economies.

Macroeconomic and institutional factors such as low inflation and strong governance reinforce the growth-enhancing effect of taxes, but these results are conditional on the income level of the economy. The findings of this study imply that the effect of taxes on growth should be evaluated within macroeconomic and structural constraints.

Contents

  • Introduction
  • Methodology and Data
  • Baseline Results
  • Factors Influencing the Relationship between Taxes and Growth
  • Effect of Taxes on Investments
  • Comments on Threshold
  • Conclusion
  • Appendix

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Governance and public sector management
  • Public financial management
  • Taxation and domestic resource mobilization
Pages
  • 60
Dimensions
  • 8.5 x 11
SKU
  • WPS240303-2
ISSN
  • 2313-6537 (print)
  • 2313-6545 (electronic)

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