| Autor: |
Ofori‐Abebrese, Grace, Baidoo, Samuel Tawiah, Olesu, Stephen Tetteh |
| Předmět: |
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| Zdroj: |
Journal of Public Affairs (14723891); May2021, Vol. 21 Issue 2, p1-9, 9p |
| Abstrakt: |
The external debt burden of many developing countries has increased their borrowing risk and interest charges on loans. The 2007–2008 global financial crisis exposed the vulnerability of developing countries' dependence on the international financial market (IFM). Given the uncertainty and higher borrowing risk, which limit access to external funds, it has become necessary that developing countries increase their internally generated revenue through taxation to facilitate growth and development. For effective distributive effect of tax policy, the tax burden ought to be optimal. This study estimates the optimal tax rate that maximises the economic growth for Ghana, using quarterly data from 2007 to 2017. Based on Scully's model, the study concludes that for the economy to grow at an average rate of 8.88% instead of the current 6.25%, the optimal tax rate should be raised from the current 15.30% to 27.69%. For policy purposes, the study highlights the implication of ensuring efficiency in revenue mobilisation through taxation. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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