The effect of TAX revenues on economic growth in Azerbaijan

Zeynalova Z.

Journal of Critical Reviews, vol.7, no.14, pp.166-172, 2020 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 7 Issue: 14
  • Publication Date: 2020
  • Doi Number: 10.31838/jcr.07.14.29
  • Journal Name: Journal of Critical Reviews
  • Journal Indexes: Scopus
  • Page Numbers: pp.166-172
  • Keywords: Economic growth, Income tax, Profit tax, VAT
  • Anadolu University Affiliated: Yes


© 2020 Innovare Academics Sciences Pvt. Ltd. All rights reserved.In this study, the relationship between economic growth and tax revenue in Azerbaijan is investigated using a least squares regression analysis using annual data for 1995-2018. Three taxes - income tax, profit tax and VAT which have the largest share in tax revenue - are included in the analysis. As a result of the analysis, a positive and significant relationship was defined between VAT and economic growth. The relationship between income tax, profit tax and GDP are not found. A causal analysis is conducted to find a link between tax revenues and economic growth. A Granger causality test showed that there is a significant positive relationship between GDP and VAT, although this relationship could not be determined between income tax and profit tax.