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Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries

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  • Wang, David Han-Min

Abstract

The unfolding globalization has profound impact on a wide range of nations’ policies including tax and economy policies. This study adopts the time series and cluster analyses to examine the convergence property of tax burden and per capita gross domestic product among Taiwan, China and the OECD countries. The empirical results show that there is no significant relationship between the integration process and fiscal convergence among countries. However, the cluster analyses identify that the group of China, Taiwan, and Korea was stably moving toward one model during the 1970s, 1980s and 1990s. And, the convergence of tax burden is found in the group, but no pairwise convergence exists.

Suggested Citation

  • Wang, David Han-Min, 2007. "Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 380(C), pages 278-286.
    • Handle: RePEc:eee:phsmap:v:380:y:2007:i:c:p:278-286
    DOI: 10.1016/j.physa.2007.02.046
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    2. Roshaiza Taha & Nanthakumar Loganathan, 2014. "Long-Run Nexus between Tax Revenue on Economic Performance: Empirical Evidence from Malaysia," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(6), pages 238-245, June.
    3. Roshaiza Taha & Nanthakumar Loganathan, 2008. "Causality Between Tax Revenue And Government Spending In Malaysia," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 2(2), pages 63-73.
    4. Innocent Nwaorgu & Wilson Herbert & Francis Onyilo, 2016. "A Longitudinal Assessment of Tax Reforms and National Income in Nigeria: 1971-2014," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(8), pages 1-43, August.

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