The impact of direct and indirect taxes on economic growth: an analytical approach from the Republic of Kosovo Online publication date: Tue, 22-Dec-2020
by Donat Rexha; Abdylmenaf Bexheti; Hajdin Berisha
International Journal of Public Sector Performance Management (IJPSPM), Vol. 7, No. 1, 2021
Abstract: The objective of this paper is to investigate the effects of direct and indirect taxes on economic growth of Kosovo, as a relatively newly-independent country with a transitional economy. The study covers a ten-year period with a monthly time series from 2006m1 to 2016m9. The time series have been tested for unit root through the employment of augmented Dickey-Fuller test, to determine if time series data are stationary or possess unit root. Through the utilisation of Johansen test for cointegration, the study analyses if models contain at least one cointegrating vector, thus indicating significant long-term relationship among direct, indirect taxes and economic growth in the country. Finally, to find the impact of direct and indirect taxes on economic growth, vector autoregressive model - unrestricted VAR has been employed. Results suggest a positive and significant effect of indirect taxes on real GDP in Kosovo.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Public Sector Performance Management (IJPSPM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook