The impact of Taxation on Economic Growth in South Africa
- Dladla, Khumbuzile and Khobai, Hlalefang
- Feb 2018
- MPRA (Munich Personal RePEC Archive)
- International
This paper investigates the impact of taxation on economic growth in South Africa. Yearly data for South Africa for the period 1981 – 2016 was used to develop the Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a negative relationship between taxes and economic growth in South Africa. The findings of the study include that economic growth, trade and openness, capital and taxes are co-integrated. This paper suggests that fiscal policy is very important to force sustainable economic growth in South Africa.
