ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES

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Luljeta Gllogjani
https://orcid.org/0000-0002-9519-0390
Esat Durguti
https://orcid.org/0000-0002-5982-3664

Abstract

The study aims to identify and empirically analyze the impact of direct tax and indirect tax revenues on economic growth in the transition countries of Southeast Europe, based on panel data for the period 2005-2019. Factors that are included in the study as independent variables are direct tax and indirect tax revenues. In contrast, the dependent variable is defined as the annual GDP growth in percentage, an indicator of economic growth. The econometric approach is OLS regression analysis, random effects regression, and fixed effects regression. The model’s reliability has been tested by applying diagnostic tests, such as autocorrelation, normal distribution, and heteroscedasticity. Moreover, the result of the Breusch and Pagan Lagrangian multiplier and Hausman test suggests that the adequate model is a regression with fixed effects. Therefore, the findings with a regression with fixed effects confirm that the revenues from indirect taxes resulted in a positive and statistically significant effect. In contrast, direct tax revenues did not significantly affect economic growth but resulted in a positive sign. The analysis through the econometric model enabled the achievement of the aims set in this paper and the achievement of the final goal, providing observed evidence that the role of tax policy is crucial to encouraging economic growth.

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How to Cite
Gllogjani, Luljeta, and Esat Durguti. 2023. “ESTIMATING TAX REVENUES ON ECONOMIC GROWTH FOR SOUTHEAST EUROPEAN COUNTRIES”. Journal of Liberty and International Affairs 9 (3):140-53. https://doi.org/10.47305/JLIA2393121g.
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Author Biographies

Luljeta Gllogjani, Faculty of Economics, University of Prishtina “Hasan Prishtina”, Kosovo

Luljeta Gllogjani holds a Bachelor’s and a Master’s in Economics in Banking, Finance, and Accounting. She graduated from the University of Prishtina, Faculty of Applied Sciences in Business, in 2016 with a bachelor's in accounting, Finance, and banking. In addition, she holds a Master's degree in Banking, Finance, and Accounting. She began Doctoral studies in 2013 at the University of Prishtina, Faculty of Economics, Banking, Finance, and Accounting. She successfully defended her PhD thesis ‘FISCAL POLICY AND ECONOMIC GROWTH IN TRANSITION COUNTRIES OF SOUTHEAST EUROPE’ at the University of Prishtina in 2022. While in university, she earned the 2010 Diploma Distinguishable Student and the 2011 Gratitude “Distinguishable Student” for her exemplary academic performance. Work experience: 01.02.2013 - 30.06.2017 Assistant and lecturer, University "Haxhi Zeka", Faculty of Business, Peja 01.10.2014 - 30.06.2016: Assistant, University "Hasan Prishtina", Faculty of Philosophy, department: Political Science, Prishtina.

Esat Durguti, University “Isa Boletini”, Faculty of Economics - Mitrovica, Kosovo

Esat A. DURGUTI completed his doctoral studies at the Faculty of Economics, at the University of Tirana in the Department of Finance. He started his professional career within the Faculty of Economics, at the University of Prishtina as a demonstrator from 2000-2002, on March 1, 2002, he started working at the Central Bank of Kosovo until September 2005, then continuing in commercial banks. In March 2009, he started working as a Lecturer within the College of International Management - GLOBUS. In October 2016, he was hired as a full-time Professor at the Faculty of Economics, at the University Isa BOLETINI - Mitrovica. On November 23, 2016, he was elected to the academic title Assistant Professor PhD. for the subjects: Financial Management, Financial Markets, and Institutions, Taxes and Corporations as well as Risk Management and Insurance. On November 27, 2020, he was elected to the academic titleAssociate Profesor PhD. for the subjects: Financial Management, Financial Markets and Institutions, Financial Accounting, Tax Accounting, and Risk Management and Insurance. The author has so far published several scientific papers with the international review.