The Impact of VAT on the Economy in Relation to Other Taxes in South East Europe

• Author: Petre Brezeanu - Ghiur Rodica - Silvia Paula Todor
• Position: Faculty of Finance / Department Finance, 'The Bucharest University of Economic Studies, Bucharest Romania
• Pages: 11-21

Law, Society & Organisations

Volume III, Issue 4 (1 / 2018)

11

Petre BREZEANU,

Ghiur RODICA,

Silvia Paula TODOR

Faculty of Finance / Department Finance

"The Bucharest University of Economic Studies, Bucharest Romania

THE IMPACT OF VAT ON THE

ECONOMY IN RELATION TO OTHER

TAXES IN SOUTH EAST EUROPE

K

eywords

Tax conformity,

Tax policy,

Indirect taxes,

Evolution,

Regresion

Abstract

Through this article, we aim to create a multifactorial model of linear regression by which we discover the

impact of the most important taxes in an economy in the economies of the countries of Southeastern

Europe. We have selected South East Europe to include and Romania in the empirical analysis. So for

building the model, we considered it opportune to choose the following independent variables: VAT,

Excise, Income Tax. The economy as a whole was considered to be well defined by the Gross Domestic

Product it produces, which is why GDP has been selected as a variable. The chosen period spans a sample

of 20 years. In conclusion, this study will try to highlight how fiscal pillars, such as VAT, ACIs and

income taxes, affect the GDP. In the light of the results obtained, we will try to interpret the coefficients

obtained through a fiscal policy that is dominant or not at this level.

JEL Classification: H20, H24, H25, H29, C32