Document Type : Article-Based Dissertations
Authors
1 PhD student at Lorestan University
2 Associate Professor of Economics, Department of Economics and Accounting, Faculty of Economics, Lorestan University, Lorestan, Iran (Corresponding Author)
3 lorestan univercity
Abstract
One of the most important economic events of the last decades of the 20th century was the emergence of "value-added tax", which is increasing in importance every day and has been accepted by most countries of the world as a new tax system. Therefore, it is necessary to investigate the nature of value added tax and to know the factors affecting it. Considering the previous studies in this field, with the classic assumption and according to the fact existence of spatial dependence between the observations and disregarding these effects the method of estimation conventional econometrics will be biased. Therefore, the main aim of this study is to consider the spatial dependence between observations. We use spatial econometric model in order to analyze the effect variable on Value added tax revenue in 16 selected Asian countries during (1995-2021).
The findings of this research indicate the positive effects of spillover and geographical distance on value added tax revenues among the countries under study. The empirical results have indicated that trade openness, gross domestic product and consumption have a positive and significant effect, unemployment has a significant negative effect on value added tax revenues. Also, urbanization has no effect on value added tax revenues. Therefore, it is suggested that countries that have a small geographical distance or are close to each other can seek to increase and improve their value added tax revenues by strengthening trade relations.
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