Stock market, tax revenue and economic growth : A case-study of Malaysia

Title: Stock market, tax revenue and economic growth : A case-study of Malaysia
Creator: Taha, Roshaiza; Colombage, Sisira; Maslyuk, Svetlana
Date: 2010
Type: Text; Conference proceedings
Identifier: http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/67342
Identifier: vital:5995
Identifier: https://doi.org/10.1109/ICMSE.2010.5719932
Abstract: This paper empirically tests Levine's [1] endogenous growth model, which suggests that stock market and tax policy jointly affect economic growth. Following Levine [1], tax or impeding financial market activities have the potential to lower per capita growth rate. Using monthly data from 1980 to 2008, the relationship between tax revenue, stock market as proxies by direct tax revenue and KLCI respectively and economic growth in Malaysia is modeled using the Granger causality and VECM framework. Results support Levine's theory and reveal that over the sample period both tax revenue and stock market affect pattern of economic growth in Malaysia. These findings indicate that strong growth can be achieved through booming of stock market activities and the high revenue collection. Fiscal policy authorities in Malaysia will find these results useful.
Publisher: Melbourne IEEE
Rights: Copyright IEEE Conference Publications Operations
Rights: This metadata is freely available under a CCO license
Subject: 1402 Applied Economics; 1502 Banking, Finance and Investment

		Thumbnail	File	Description	Size	Format