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ZENODO
Article . 2026
License: CC BY
Data sources: ZENODO
ZENODO
Article . 2026
License: CC BY
Data sources: Datacite
ZENODO
Article . 2026
License: CC BY
Data sources: Datacite
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ANALYSES OF TAX STRUCTURE AND ECONOMIC GROWTH

Authors: Sherifov O.;

ANALYSES OF TAX STRUCTURE AND ECONOMIC GROWTH

Abstract

This study examines the impact of tax structure on economic growth and investment dynamics, focusing on how different types of taxation influence key macroeconomic indicators such as Gross Domestic Product (GDP), investment levels, and consumption patterns. The research highlights that taxation plays a dual role in economic systems: while it provides essential public revenues for financing infrastructure, education, and technological development, it can also impose constraints on private sector activity if designed inefficiently. The paper analyzes the effects of income taxes, corporate taxes, and consumption-based taxes, demonstrating that high tax burdens may negatively affect investment incentives and labor supply, whereas well-structured tax systems can support sustainable economic growth. Empirical analysis based on correlation and regression models indicates that investment has a strong positive relationship with GDP growth, while excessive taxation shows a moderate negative effect. However, the findings also reveal that consumption taxes such as value-added tax (VAT) have a less distortive impact on economic performance compared to income-based taxes. Additionally, government expenditure financed through tax revenues—particularly in infrastructure and human capital—plays a crucial role in enhancing long-term productivity and economic stability. The study further emphasizes the importance of tax policy design, institutional quality, and fiscal efficiency in shaping economic outcomes. Comparative analysis across different economic models suggests that balanced tax systems, combined with effective public spending, can achieve both economic growth and social equity. The results provide important policy implications, indicating that governments, particularly, should prioritize efficient tax structures, promote investment-friendly environments, and ensure transparency and stability in fiscal policy to foster sustainable economic development.

Keywords

Tax structure, Economic growth, GDP, Investment, Fiscal policy, Tax incentives, Public expenditure, VAT, Economic development, Tax policy.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average