Hasti Bagheri; Asghar Abolhassani Hastiani; Yeganeh Mousavi Jahromi; Kamran Mani
Abstract
Today, taxes play an important role in the economic growth and development of countries by maintaining the existence of the government and financing social programs and infrastructure investment. Also, taxation helps to allocate resources, redistribute income and correct negative externalities as well ...
Read More
Today, taxes play an important role in the economic growth and development of countries by maintaining the existence of the government and financing social programs and infrastructure investment. Also, taxation helps to allocate resources, redistribute income and correct negative externalities as well as support domestic industries. Therefore, tax evasion reduces the role of tax effectiveness in the mentioned cases. The relevance of the subject of the study is evident from the fact that every year an important part of financial income is lost through the activities of financial planning, financial evasion and tax evasion carried out by the private sector. The purpose of this article is to investigate the relationship between tax evasion and economic growth during the period of 2011-2020 Iran. For this purpose, seasonal data from Denton's method and estimated tax evasion data have been used. In this study, in the form of a three-part model, the effect of extra-fiscal on economic growth has been investigated using vector autoregression model with distributional lag (ARDL). The results show that in the short term, in the economic growth model, the coefficient of tax evasion, employment rate, foreign investment and oil income variables are negative. However, in the long run, the impact of tax evasion, employment rate, oil revenue and average tax burden on economic growth are positive. Despite the fact that the coefficient of foreign investment in the long run is not significant.
s
Mohammadghasem Rezaee; Majid Maddah; Yeganeh Mousavi Jahromi
Abstract
Taxes are a policy-making tool for the economic stabilization and, on this basis; local taxes can influence provinces’ economic performance. Local taxes are taxes for which the rates and bases are determined by the local authorities. These taxes finance services to be provided for local residents. ...
Read More
Taxes are a policy-making tool for the economic stabilization and, on this basis; local taxes can influence provinces’ economic performance. Local taxes are taxes for which the rates and bases are determined by the local authorities. These taxes finance services to be provided for local residents. Local taxes influence regional economic growth for the following main reasons: increased competition among the regions, higher economic growth, decreased shadow economy and finally, improvement of taxpayer’s behavior. Thus, this research has reviewed and empirically analyzed the effect of corporate income tax, personal income tax, property tax and consumption tax as local taxes on country provinces’ economic growth. To this end, within the framework of ECM models, a PMG methodology was employed that made use of quarterly data during March 2005- July 2015. The results of the model estimation show that, property tax and consumption tax increase regional economic growth, whereas corporate income tax and personal income tax decreases the regional economic growth. Also, revenue-neutral shift away from either corporate income or personal income tax toward property or consumption tax leads to increases the regional long- run growth. The results indicate that optimal local taxation (with property and consumption tax bases) leads to provincial economic growth. So, this study can be used as guidance for economic policy-makers.
Dynamic Panel Data
Ebrahim Abdi; Farhad Khodadad Kashi; Yeganeh Mousavi Jahromi
Abstract
Over the past two decades, significant changes have taken place in the banking market power in Iran economy. In addition, economic theories provide different forecasts on the impact of banking market power on firms’ investment. For this reason, the present study examines the impact of these changes ...
Read More
Over the past two decades, significant changes have taken place in the banking market power in Iran economy. In addition, economic theories provide different forecasts on the impact of banking market power on firms’ investment. For this reason, the present study examines the impact of these changes on firms’ investment. For this purpose, using the data of Tehran Stock Exchange companies during the period of 2005 to 2016, the investment model was estimated based on Euler's equations and dynamic generalized method of moments. The results of model estimation with confirming the existence of financial friction in Iran economy showed that firms faced financial constraint on investment. In addition, by rejecting market power hypothesis and by confirming asymmetric information hypothesis, the results showed that the declining in banking market power led to an increase in firms' financial constraints. The results also suggest that the firm size has been affecting the firm financial constraints, and increasing in the banking market power has reduced the financial constraints of small firms more than large firms. The results of model estimation with regard to the effect of business cycles indicate that during the boom period, the positive effect of the banking market power on firms' financial constraints has decreased and this effect increases during the recession period.
Yeganeh Mousavi Jahromi; Mohammad Reza Razavi; Farhad Khodadad Kashi; Seied Hossien Eizadi
Volume 7, Issue 28 , September 2017, , Pages 33-50
Abstract
Iran’s tax system includes many forms of tax incentives, like as regionally targeted tax incentives. According to direct tax act, article 132, that includes this kind of incentive, declared taxable income of manufacturing and mining activities in less developed regions are totally (100%) exempt ...
Read More
Iran’s tax system includes many forms of tax incentives, like as regionally targeted tax incentives. According to direct tax act, article 132, that includes this kind of incentive, declared taxable income of manufacturing and mining activities in less developed regions are totally (100%) exempt from corporate income tax for ten years. The aim of this study is to estimate the impact of tax exemptions of article 132 on employment of Iran’s less developed counties for the period from 1996 to 2008. In the present paper, a two- stage method is used. In the first stage, a proper control group is selected for each treated county by using Synthetic Control Method (SCM) and Genetic algorithm, and the impact of tax incentives article 132 on employment in Iran’s less developed regions is estimated via Difference in Difference (DID) Method, in the second stage. Results indicate that tax exemptions in mentioned Article have no impact on employment of Iran’s less developed counties.
