Tax policy is among the most common and relevant instruments in the toolkit of policy-makers when thinking about promoting growth, yet there is not compelling evidence regarding its effect in Tunisia. Using a variety of approaches, we measure firstly the optimal tax burden rate using Scully's static model and the quadratic model. For Scully's static model, gross domestic product is the dependent variable. For the quadratic model, growth rate is a dependent variable explained by tax rate in level and in square. Secondly and according to stationary and cointegration test results, we focus on the long-term effects on gross domestic product of the important taxes, namely tax revenue and private receipts. In this second study, we use a basic Scully model and we develop a vector error correction model technique. Our results show that optimal tax burden rate has to be situated between 12.8% and 19.6% of gross domestic product which is widely lower than the current rates. The long-term analysis estimates an optimal rate of 14% of gross domestic product which can participate to increase economic growth, to stabilize the tax evasion and to encourage investment especially after the Tunisian revolution.
This article examines the corruption effects on economic growth in Tunisia during the period 1987 to 2016. The model used in this study is an extension of Solow's model by defining corruption in the field of technical progress. In order to delineate the role of the human capital in corruption, the study sets out to estimate the model firstly in the absence and in the presence of human capital. One outstanding result of VECM estimations is that, in the long run, the human capital plays a key role in the increase of the effect of the total corruption and the decrease in the effect of the growth of the population without effecting a change in the physical capital. In the short term, human capital allows to transform the negative effect of the delayed variable output into a positive one. It also increased the effect of total corruption and made the effect of physical capital positive.
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