The Correlation between Value Added Tax and Economic Growth in Romania

Keywords: VAT , economic growth , autoregressive vector , Granger causality


  • Ana-Maria Urîțescu, Affiliation: Bucharest University of Economic Studies, Bucharest, Romania.
Pages:  29 : 38

The study aims to investigate the relationship between the revenues collected from the VAT and the GDP in Romania, for the period of 1993-2016. The interest in studying this relationship derives from the importance gained by this tax over the years and from the actuality of the economic growth in Romania. The methods used are: estimating a regression model and estimating the autoregressive vector model using Eviews 9. The regression model has the gross domestic as a dependent variable and as an independent variable the revenues from the VAT. The results obtained from the analysis indicates that there is a positive and direct relationship between the two variables and the variation of the GDP is explained by the revenues from the VAT.

JEL classification: H20, C50