Impact of tax revenue on economic growth: A study from Cambodia

The study examines the impact of tax revenue on economic growth in Cambodia from 1994 to 2022. The Autoregressive Distributed Lag (ARDL) method is applied to test the cointegration between variables. It analyzes long- and short-run dynamics between tax revenue and economic growth, considering specia...

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Main Author: Kong Chantha
Format: Article
Language:English
Published: HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE 2024-09-01
Series:Ho Chi Minh City Open University Journal of Science - Economics and Business Administration
Subjects:
Online Access:https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3291
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author Kong Chantha
author_facet Kong Chantha
author_sort Kong Chantha
collection DOAJ
description The study examines the impact of tax revenue on economic growth in Cambodia from 1994 to 2022. The Autoregressive Distributed Lag (ARDL) method is applied to test the cointegration between variables. It analyzes long- and short-run dynamics between tax revenue and economic growth, considering special taxes, public expenditure, and the service sector’s growth. The findings reveal a significant positive association between tax revenue and economic growth in the long run, indicating that a 1% increase in tax revenue leads to a 0.11% increase in economic growth, while special taxes positively impact economic growth. However, public expenditure exhibits a negative relationship with long-term growth. Moreover, the growth of the service sector emerges as a vital driver of economic expansion. The short-run dynamics suggest fluctuations in tax revenue’s impact on economic growth. The regression model exhibits high explanatory power, with diagnostic tests confirming its reliability. Therefore, The Royal Government should balance and optimize tax laws and regulations, continually amending and compiling them. Additionally, consistent policies and strategic plans should be established to prevent tax evasion and eliminate corruption in tax affairs.
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spelling doaj-art-bc6312ddf34c4d8a929d05dac2cad75e2025-08-20T03:08:28ZengHO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCEHo Chi Minh City Open University Journal of Science - Economics and Business Administration2734-93142734-95862024-09-0115332010.46223/HCMCOUJS.econ.en.15.3.3291.20252213Impact of tax revenue on economic growth: A study from CambodiaKong Chantha0Royal Academy of Cambodia, Phnom PenhThe study examines the impact of tax revenue on economic growth in Cambodia from 1994 to 2022. The Autoregressive Distributed Lag (ARDL) method is applied to test the cointegration between variables. It analyzes long- and short-run dynamics between tax revenue and economic growth, considering special taxes, public expenditure, and the service sector’s growth. The findings reveal a significant positive association between tax revenue and economic growth in the long run, indicating that a 1% increase in tax revenue leads to a 0.11% increase in economic growth, while special taxes positively impact economic growth. However, public expenditure exhibits a negative relationship with long-term growth. Moreover, the growth of the service sector emerges as a vital driver of economic expansion. The short-run dynamics suggest fluctuations in tax revenue’s impact on economic growth. The regression model exhibits high explanatory power, with diagnostic tests confirming its reliability. Therefore, The Royal Government should balance and optimize tax laws and regulations, continually amending and compiling them. Additionally, consistent policies and strategic plans should be established to prevent tax evasion and eliminate corruption in tax affairs.https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3291ardlbounds testcambodiaeconomic growthtax revenue
spellingShingle Kong Chantha
Impact of tax revenue on economic growth: A study from Cambodia
Ho Chi Minh City Open University Journal of Science - Economics and Business Administration
ardl
bounds test
cambodia
economic growth
tax revenue
title Impact of tax revenue on economic growth: A study from Cambodia
title_full Impact of tax revenue on economic growth: A study from Cambodia
title_fullStr Impact of tax revenue on economic growth: A study from Cambodia
title_full_unstemmed Impact of tax revenue on economic growth: A study from Cambodia
title_short Impact of tax revenue on economic growth: A study from Cambodia
title_sort impact of tax revenue on economic growth a study from cambodia
topic ardl
bounds test
cambodia
economic growth
tax revenue
url https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3291
work_keys_str_mv AT kongchantha impactoftaxrevenueoneconomicgrowthastudyfromcambodia