Economic growth and tax structure in Zimbabwe: 1984–2009
Loading...
Date
2012
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Inderscience Enterprises Ltd
Abstract
We examine the tax-growth nexus in Zimbabwe using parametric
and non-parametric analysis. We use a two-stage estimation procedure that first
generates efficiency scores for the country using a Data Envelopment
Approach. We use the efficiency scores in the second stage to normalise
growth to get a proxy for potential economic growth. Using this potential
growth we run a translog model that allows computation of time-varying
elasticities of growth to changes in tax policy. The translog model results we
got indicate that economic growth is inelastic to tax structure in Zimbabwe.
As such, we recommend policies that rely on non-tax stimuli to the economy
to buttress growth. We find that the most inefficient years were those
punctuated with bad economic governance and droughts.
Description
Keywords
tax; growth; Zimbabwe; translog model; efficiency scores; structural adjustment policy; unit roots; DEA; economic policy; emerging economies.
Citation
Marire, J., & Sunde, T. (2012). Economic growth and tax structure in Zimbabwe: 1984–2009. International Journal of Economic Policy in Emerging Economies, 5(2), 105-121.