Effect of the Tax Rate on Economic Growth: A Panel Analysis


  • Muhammad Taqi School of Economics, Bahauddin Zakariya University, Multan. Pakistan. Author
  • Muhammad Rizwan Lecturer in Economics, Government of Punjab, Higher Education Department (Colleges), Punjab, Pakistan. Author
  • Waqar Ahmad PhD Scholar, IIIE, International Islamic University, Islamabad. Pakistan. Author
  • Muhammad Umair Lecturer, Department of Economics, Emerson University Multan. Author


Taxation, Economic Growth, PMG, Panel Least Square, Granger Causality


The tax has a vital role in the economy. All the progress of the country depends upon tax collection and tax policy. This study is to find the impact of tax revenue on the economic growth of the USA, UK, India, and Kenya. The current study explored tax structure is different in developed and developing countries. It clears that developed countries such as the UK and the United States have a powerful, effective, and efficient system for tax collection. A significant source of tax revenue is collected through direct taxes. Moreover, if we compare it with developing countries, developed countries collect more tax revenue, and many individuals pay taxes in developed countries. The PMG ARDL techniques are used to find the objective of the study. The outcome of the study indicates that tax has positive and significant related to economic growth. 



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How to Cite

Effect of the Tax Rate on Economic Growth: A Panel Analysis. (2021). International Research Journal of Management and Social Sciences, 2(2), 12-26. https://irjmss.com/index.php/irjmss/article/view/125

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