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Impact of Income and Corporate Taxes on Economic Development in Egypt

The purpose of this study is to examine how do corporate and income taxes impact economic development in Egypt. This study uses the analytical quantitative method, and the approach of this study is based on using annual time series data for the period 1980 to 2018 to estimate two models by using Aut...

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Main Author: Abo-Ahmed, Khaled
Format: Thesis
Published: AUC Knowledge Fountain 2021
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access_status_str Open Access
author Abo-Ahmed, Khaled
author_browse Abo-Ahmed, Khaled
author_facet Abo-Ahmed, Khaled
author_sort Abo-Ahmed, Khaled
collection Thesis
description The purpose of this study is to examine how do corporate and income taxes impact economic development in Egypt. This study uses the analytical quantitative method, and the approach of this study is based on using annual time series data for the period 1980 to 2018 to estimate two models by using Autoregressive distributed lag (ARDL) model. First estimation is between direct taxes (corporate and income taxes) and Growth domestic product (GDP) growth as dependent variable, and the second one by using human development index (HDI) instead of GDP growth. The second objective is to investigate the difference, if any, with the result obtained by using HDI and GDP in estimating the impact of the corporate and income taxes on the economic development of Egypt. Findings show a positively and significantly relationship between direct tax (Income and Corporate taxes) and economic growth in Egypt, and negative relationship between direct tax (Income and Corporate taxes) and economic development. The researcher, therefore, conclude that the implication of tax revenue is not making as much impact on economic development as on gross domestic product of Egypt. Thus, the Egyptian government should work more on encouraging its people to create trust in it through tax transparency, ensuring high fulfillment of the promises made to the public. This study provides a useful insight for the policy makers, stakeholders and government into the importance of tax revenue for economic development as a result; revenue derived from tax should be wisely used to encourage people to continue to pay tax.
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institution American University in Cairo (Egypt)
last_indexed 2026-06-10T12:35:50.652Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from AUC Knowledge Fountain — bepress
publishDate 2021
publishDateRange 2021
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publisher AUC Knowledge Fountain
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spelling oai:fount.aucegypt.edu:etds-2661 Impact of Income and Corporate Taxes on Economic Development in Egypt Abo-Ahmed, Khaled The purpose of this study is to examine how do corporate and income taxes impact economic development in Egypt. This study uses the analytical quantitative method, and the approach of this study is based on using annual time series data for the period 1980 to 2018 to estimate two models by using Autoregressive distributed lag (ARDL) model. First estimation is between direct taxes (corporate and income taxes) and Growth domestic product (GDP) growth as dependent variable, and the second one by using human development index (HDI) instead of GDP growth. The second objective is to investigate the difference, if any, with the result obtained by using HDI and GDP in estimating the impact of the corporate and income taxes on the economic development of Egypt. Findings show a positively and significantly relationship between direct tax (Income and Corporate taxes) and economic growth in Egypt, and negative relationship between direct tax (Income and Corporate taxes) and economic development. The researcher, therefore, conclude that the implication of tax revenue is not making as much impact on economic development as on gross domestic product of Egypt. Thus, the Egyptian government should work more on encouraging its people to create trust in it through tax transparency, ensuring high fulfillment of the promises made to the public. This study provides a useful insight for the policy makers, stakeholders and government into the importance of tax revenue for economic development as a result; revenue derived from tax should be wisely used to encourage people to continue to pay tax. 2021-06-17T07:00:00Z thesis application/pdf https://fount.aucegypt.edu/etds/1639 https://fount.aucegypt.edu/context/etds/article/2661/viewcontent/Khaled_Abo_Ahmed_Thesis.pdf Theses and Dissertations AUC Knowledge Fountain Tax revenue Economic development Economic growth Gross domestic product Human development index. Economic Policy
spellingShingle Tax revenue
Economic development
Economic growth
Gross domestic product
Human development index.
Economic Policy
Abo-Ahmed, Khaled
Impact of Income and Corporate Taxes on Economic Development in Egypt
title Impact of Income and Corporate Taxes on Economic Development in Egypt
title_full Impact of Income and Corporate Taxes on Economic Development in Egypt
title_fullStr Impact of Income and Corporate Taxes on Economic Development in Egypt
title_full_unstemmed Impact of Income and Corporate Taxes on Economic Development in Egypt
title_short Impact of Income and Corporate Taxes on Economic Development in Egypt
title_sort impact of income and corporate taxes on economic development in egypt
topic Tax revenue
Economic development
Economic growth
Gross domestic product
Human development index.
Economic Policy
url https://fount.aucegypt.edu/etds/1639
https://fount.aucegypt.edu/context/etds/article/2661/viewcontent/Khaled_Abo_Ahmed_Thesis.pdf
work_keys_str_mv AT aboahmedkhaled impactofincomeandcorporatetaxesoneconomicdevelopmentinegypt