Government spending efficiency on economic growth: roles of value-added tax

Chan, Sok-Gee and Ramly, Zulkufly and Abd Karim, Mohd Zaini (2017) Government spending efficiency on economic growth: roles of value-added tax. Global Economic Review: Perspectives on East Asian Economies and Industries, 46 (2). pp. 162-188. ISSN 1226-508X E-ISSN 1744-3873

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Abstract

This study examines the impact of government spending efficiency on the economic growth of 115 countries with the value-added tax (VAT) system. We seek to examine the moderating role of the VAT system on the relationship between public spending efficiency and the economic growth. Using Generalized Method of Moments estimation based on two-step estimate, we found (1) government spending efficiency promotes economic growth, (2) the VAT system is found to enhance the effect of an efficient government spending on the economic growth and (3) the moderating role of the VAT system is further enhanced by quality of democracy and legislative strength of the government.

Item Type:	Article (Journal)
Additional Information:	7002/55882
Uncontrolled Keywords:	Government spending efficiency; value-added tax (VAT); economic growth; country governance; data envelopment analysis
Subjects:	H Social Sciences > HJ Public Finance 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:	13 Apr 2017 14:23
Last Modified:	08 Jun 2017 11:49
URI:	http://irep.iium.edu.my/id/eprint/55882

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