Potential Tax Reforms аnd Kuwait Economic Growth

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series da...

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Main Authors: K. Lawler, F. Ali Al-Sayegh
Format: Article
Language:deu
Published: Taras Shevchenko National University of Kyiv 1899-12-01
Series:Вісник Київського національного університету імені Тараса Шевченка. Серія Економіка
Online Access:http://bulletin-econom.univ.kiev.ua/wp-content/uploads/2019/06/202-42-48.pdf
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author K. Lawler
F. Ali Al-Sayegh
author_facet K. Lawler
F. Ali Al-Sayegh
author_sort K. Lawler
collection DOAJ
description The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait's government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.
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institution OA Journals
issn 1728-2667
2079-908X
language deu
publishDate 1899-12-01
publisher Taras Shevchenko National University of Kyiv
record_format Article
series Вісник Київського національного університету імені Тараса Шевченка. Серія Економіка
spelling doaj-art-9b949a39ffd04393b93fa0078a25199e2025-08-20T02:18:27ZdeuTaras Shevchenko National University of KyivВісник Київського національного університету імені Тараса Шевченка. Серія Економіка1728-26672079-908X1899-12-011202424810.17721/1728-2667.2019/202-1/6Potential Tax Reforms аnd Kuwait Economic GrowthK. Lawler0F. Ali Al-Sayegh1Professor, Department of Economics, College of Business Administration, Kuwait University, Kuwait, KuwaitGraduate Student, College of Business Administration, Kuwait University, Kuwait, KuwaitThe objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait's government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.http://bulletin-econom.univ.kiev.ua/wp-content/uploads/2019/06/202-42-48.pdf
spellingShingle K. Lawler
F. Ali Al-Sayegh
Potential Tax Reforms аnd Kuwait Economic Growth
Вісник Київського національного університету імені Тараса Шевченка. Серія Економіка
title Potential Tax Reforms аnd Kuwait Economic Growth
title_full Potential Tax Reforms аnd Kuwait Economic Growth
title_fullStr Potential Tax Reforms аnd Kuwait Economic Growth
title_full_unstemmed Potential Tax Reforms аnd Kuwait Economic Growth
title_short Potential Tax Reforms аnd Kuwait Economic Growth
title_sort potential tax reforms аnd kuwait economic growth
url http://bulletin-econom.univ.kiev.ua/wp-content/uploads/2019/06/202-42-48.pdf
work_keys_str_mv AT klawler potentialtaxreformsandkuwaiteconomicgrowth
AT falialsayegh potentialtaxreformsandkuwaiteconomicgrowth