The relationship between economic growth and taxation: an empirical study on optimal taxation in sub-Saharan Africa
- Authors: Kent, Bradley Athol
- Date: 2022-10-14
- Subjects: Taxation Africa, Sub-Saharan , Optimal tax , Economic development Africa, Sub-Saharan , Tax collection Africa, Sub-Saharan
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403058 , vital:69918
- Description: The relationship between economic growth and taxation is a complex and highly debated issue, this thesis investigates whether a significant relationship can be identified, and whether it is the level that truly matters for fiscal policies aimed at being growth enhancing. Further investigation examines this relationship, in addition to testing whether there is a threshold below which tax collection may be considered ‘growth-enhancing’, and above which is negative for economic growth, and if such a threshold exists, to identify the manner in which taxation negatively impacts economic growth. The study makes use of a panel data approach to autoregressive distributed lag modelling and a generalised least squares regression. The study focuses on a panel data sample for seven (7) countries within Sub-Saharan Africa (SSA) between 1997 – 2017. It found that total tax revenue held a positive and significant relationship with economic growth at the SSA level, whilst at the individual tax level; PAYE and property taxes were found to have a negative influence on growth, with no other fiscal variables significantly influencing growth in the long run in SSA test. Whereas, when analysing at the country-specific level it was found PAYE was only significantly influencing growth in South Africa, where the relationship was found to be negative. Corporate tax revealed a similar significant negative relationship in Swaziland and Cameroon. In addition, property taxes revealed a significant and negative relationship in South Africa, yet in Rwanda the influence was positive. Overall, the study found that there is significant relationship between economic growth and taxation in the SSA context. However, when analysing the countries in isolation, no such relationship was found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
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- Authors: Kent, Bradley Athol
- Date: 2022-10-14
- Subjects: Taxation Africa, Sub-Saharan , Optimal tax , Economic development Africa, Sub-Saharan , Tax collection Africa, Sub-Saharan
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403058 , vital:69918
- Description: The relationship between economic growth and taxation is a complex and highly debated issue, this thesis investigates whether a significant relationship can be identified, and whether it is the level that truly matters for fiscal policies aimed at being growth enhancing. Further investigation examines this relationship, in addition to testing whether there is a threshold below which tax collection may be considered ‘growth-enhancing’, and above which is negative for economic growth, and if such a threshold exists, to identify the manner in which taxation negatively impacts economic growth. The study makes use of a panel data approach to autoregressive distributed lag modelling and a generalised least squares regression. The study focuses on a panel data sample for seven (7) countries within Sub-Saharan Africa (SSA) between 1997 – 2017. It found that total tax revenue held a positive and significant relationship with economic growth at the SSA level, whilst at the individual tax level; PAYE and property taxes were found to have a negative influence on growth, with no other fiscal variables significantly influencing growth in the long run in SSA test. Whereas, when analysing at the country-specific level it was found PAYE was only significantly influencing growth in South Africa, where the relationship was found to be negative. Corporate tax revealed a similar significant negative relationship in Swaziland and Cameroon. In addition, property taxes revealed a significant and negative relationship in South Africa, yet in Rwanda the influence was positive. Overall, the study found that there is significant relationship between economic growth and taxation in the SSA context. However, when analysing the countries in isolation, no such relationship was found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
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Bond market integration in the Common Monetary Area (CMA)
- Ramoriting, Retšelisitsoe Silvia
- Authors: Ramoriting, Retšelisitsoe Silvia
- Date: 2022-04-06
- Subjects: Globalization , Globalization Economic aspects , Bond market , Rand area , Africa, Southern Economic integration , Autoregressive distributed lag (ARDL) model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284592 , vital:56077
- Description: The study reviews the phenomenon of financial integration. During the late 1980s and 1990s, financial market integration around the world increased due to globalisation of investments and the need for higher returns and international risk diversification. The increase was accompanied by a significant increase in private capital flows into developing countries from developed countries. The main goal of the study is to examine bond market integration in the common monetary area The study therefore investigates the co-movement of government bond returns within the CMA using data from Eswatini, Namibia, and South Africa. The study attempts to find the short-run and long-run relationship of these government bond returns using the ARDL cointegration technique. The study uses daily data of 10-year government bond yields spanning from August 2014 to September 2019. The empirical results reveal that there exists a short-run and long-run relationship between South Africa and Eswatini. Between South Africa and Namibia, there only exist a short-run relationship. Just like the previously mentioned studies, the short-run relationship is a result of policy convergence. The lack of long-run relationship between South and Namibia was due to poor institutional developments and limited investment opportunities. In this case, policy measures (or reforms) and a review of the union are necessary to increase integration of these bond markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Authors: Ramoriting, Retšelisitsoe Silvia
- Date: 2022-04-06
- Subjects: Globalization , Globalization Economic aspects , Bond market , Rand area , Africa, Southern Economic integration , Autoregressive distributed lag (ARDL) model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284592 , vital:56077
- Description: The study reviews the phenomenon of financial integration. During the late 1980s and 1990s, financial market integration around the world increased due to globalisation of investments and the need for higher returns and international risk diversification. The increase was accompanied by a significant increase in private capital flows into developing countries from developed countries. The main goal of the study is to examine bond market integration in the common monetary area The study therefore investigates the co-movement of government bond returns within the CMA using data from Eswatini, Namibia, and South Africa. The study attempts to find the short-run and long-run relationship of these government bond returns using the ARDL cointegration technique. The study uses daily data of 10-year government bond yields spanning from August 2014 to September 2019. The empirical results reveal that there exists a short-run and long-run relationship between South Africa and Eswatini. Between South Africa and Namibia, there only exist a short-run relationship. Just like the previously mentioned studies, the short-run relationship is a result of policy convergence. The lack of long-run relationship between South and Namibia was due to poor institutional developments and limited investment opportunities. In this case, policy measures (or reforms) and a review of the union are necessary to increase integration of these bond markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
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