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Impact of Taxes and Fees on the Productivity of the Palestinian Industrial Sector

Author

Listed:
  • Yousef Abdel Jawad

    (Department of Economic, An- Najah National University, Nablus, Palestine.)

  • Shaker Zabada

    (Department of Economic, An- Najah National University, Nablus, Palestine.)

Abstract

The study aimed to determine the effect of taxes and fees on the productivity of the industrial sector in Palestinian case, also in the details at the level of economic activity. To achieve the objectives of this study, the descriptive and quantitative methodology was used. Based on the data of the economic survey series cross sectional data in 2015 was used and, provided by the Palestinian Central Bureau of Statistics (PCBS), the Ordinary Least Squares Method (OLS) was used in regression analysis. The study found that the effect of taxes on the productivity of the industrial sector is small in general and varies according to the nature of the economic activity. This is different from the expectation that the effect of taxes will be negative. This is mainly because the high degree of tax evasion in Palestine while it does not constitute as a burden in other countries.

Suggested Citation

  • Yousef Abdel Jawad & Shaker Zabada, 2019. "Impact of Taxes and Fees on the Productivity of the Palestinian Industrial Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 162-167.
    • Handle: RePEc:eco:journ1:2019-02-20
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    References listed on IDEAS

    as
    1. Antoine Dechezleprêtre & Misato Sato, 2017. "The Impacts of Environmental Regulations on Competitiveness," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 183-206.
    2. Hussain, Syed Muhammad, 2015. "The contractionary effects of tax shocks on productivity: An empirical and theoretical analysis," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 93-107.
    3. Gerdie Everaert & Freddy Heylen & Ruben Schoonackers, 2015. "Fiscal policy and TFP in the OECD: measuring direct and indirect effects," Empirical Economics, Springer, vol. 49(2), pages 605-640, September.
    4. Auerbach, Alan J. & Hines, James Jr., 2002. "Taxation and economic efficiency," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 21, pages 1347-1421, Elsevier.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Productivity; Taxes; Fees; Industrial sector.;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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