The Effect of Revenue from Taxation on the Economic Growth of Bangladesh: Evidence from Time Series Data
- DOI
- 10.2991/978-94-6463-770-0_51How to use a DOI?
- Keywords
- Taxation; Economic growth; Impact; Bangladesh; Tax policy
- Abstract
Taxes play a pivotal role in influencing a nation's economic progress by generating revenue for essential public goods and services. Nonetheless, an excess of taxation can impede economic growth by deterring investment and consumption. Therefore, this study examines the relationship between taxation and economic growth in Bangladesh through the application of econometric analysis. A time series data collected from the period of 1987–2022 was applied to conduct the econometric analysis. This investigation employs diverse econometric techniques and models to explore the impact of taxation on economic growth in Bangladesh. The results revealed the GDP growth by indicating 1% increase of tax revenue, GDP will be increased by 0.00068%. The econometric study yields a substantial coefficient of R2 = 0.971, indicating a high level of determination with a forecasting accuracy of 97.1%. Furthermore, it is evident that not all taxes exert an identical influence on bolstering the economy. These findings offer valuable insights for policymakers in formulating effective tax policies that promote sustainable economic growth.
- Copyright
- © 2025 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Naznin Akhter Nipa AU - Yan Liu AU - Sazal Ahmed AU - Sissoko Bourema PY - 2025 DA - 2025/06/26 TI - The Effect of Revenue from Taxation on the Economic Growth of Bangladesh: Evidence from Time Series Data BT - Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025) PB - Atlantis Press SP - 444 EP - 467 SN - 2352-5428 UR - https://doi.org/10.2991/978-94-6463-770-0_51 DO - 10.2991/978-94-6463-770-0_51 ID - Nipa2025 ER -