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The Effect of Tax Structure in Economic Growth

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Ray Sukma

Academic year: 2023

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Title The Effect of Tax Structure in Economic Growth

Author B. Gashi,B.Asllani,.Boqolli

Number/Vol/Date/Year of Publication No:5657 Volume VI,Issue 2,2018

Journal International Journal Of Economic And Business Administration

Student’s Name Guruh Ray Sukma Nugroho

NIM 22403201

Class/Study Prorgram MBS E/2

A. MIND MAP

B. SUMMARY

The Republic of Kosovo has built and continues to develop its tax system which is simple, by implementing a low tax rate scheme and expanded. The tax system and policy in Kosovo needs reform from many segments because it has a crucial impact on the function of meeting public needs and economic development. Economic growth influences fiscal policy which tends to have a more negative impact, while the reduction in tax rates has a positive impact, especially on GDP growth and encourages FDI inflows. The

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purpose of this research is to analyse the effect of tax structure in the economic growth of Kosovo, to develop this work a comparative analysis method was adopted using primary and secondary data with econometric models. Following the specification of the loglog model and the valuation method, the data were analysed, calculated and the results interpreted accordingly. Finally, the validity of the hypotheses defined in the research are verified using method of Ordinary Least Squares (OLS). Through the log-log model, the results obtained will be calculated as follows independent variable. these facts we will solve it as a linear model, since the F-test is higher than the value from the F-table respectively (505 > 6.11). While the value of F-statistics is greater than the critical value, we conclude that zero hypothesis is rejected therefore we accept the alternative hypothesis, with the variable of the VAT in it.

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