Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance

Chan, Sok Gee and Ramly, Zulkufly (2015) Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance. In: The International Conference on Economics, Accounting and Business Management (EABM 2015), 21st Nov. 2015, Hotal Bangi Putrajaya. (Unpublished)

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Abstract

This study examines the impact of government spending efficiency on the economic growth of 115 countries with value-added tax (VAT) system. We seek to examine the moderating role of the VAT system and country governance in the relationship between public spending efficiency and the economic growth of a nation. The sample covers the period between 1984 and 2014. Using GMM estimation based on two-step estimate, we found (1) government spending efficiency enhances economic growth, (2) an efficient as well as transparent tax administration and higher tax revenue generated from the VAT system enhances the effect of an efficient government spending on the economic growth of a country and (3) the moderating role of the VAT system is further enhanced by the quality of democracy and legislative strength of the government.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	7002/48040
Uncontrolled Keywords:	government spending efficiency, value-added tax (VAT), economic growth, country governance
Subjects:	H Social Sciences > HJ Public Finance > HJ2240 Revenue. Taxation H Social Sciences > HJ Public Finance > HJ7451 Expenditures. Government spending
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr Zulkufly Ramly
Date Deposited:	20 Jan 2016 11:46
Last Modified:	20 Sep 2016 14:37
URI:	http://irep.iium.edu.my/id/eprint/48040

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