The Impact of Tax and Expenditures Policies on Income Distribution: Evidence from Pakistan

IF 1 Q3 ECONOMICS
Etikonomi Pub Date : 2021-11-02 DOI:10.15408/etk.v20i2.18121
Suhrab Khan, Ihtisham ul Haq Padda
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引用次数: 3

Abstract

Tax and social expenditure policies have a crucial role in income distribution. This study explores the potential role of taxation and social expenditure policies in income redistribution in South Asia. For this purpose, empirical analysis is conducted by Fixed Effect (FE) and Instrumental Variable (IV) FE models. The analysis suggests that both taxation and social expenditures policies effectively reduce income inequality in South Asia. These findings indicate that social spending and taxation can be used as a policy tool to redistribute income in developing countries. The results also indicate that higher social spending, increased direct taxes, and more reliance on foreign debts can ameliorate the income distribution. Based on the results, it can be suggested that for this region, with the low level of taxes, direct taxes, a large informal economy, and other weak features of tax administration, more reliance on direct taxes and social expenditure policies should be the primary tool for income redistribution.JEL Classification: H2, H5, I3How to Cite:Khan, S., & Padda, I. U. H. (2021). The Impact of Tax and Social Expenditure Policies on Income Distribution: Evidence from South Asia. Etikonomi, 20(2), xx – xx. https://doi.org/10.15408/etk.v20i2.18121.
税收和支出政策对收入分配的影响:来自巴基斯坦的证据
税收和社会支出政策在收入分配中起着关键作用。本研究探讨了南亚地区税收和社会支出政策在收入再分配中的潜在作用。为此,本文采用固定效应(Fixed Effect, FE)模型和工具变量(Instrumental Variable, IV)模型进行实证分析。分析表明,税收和社会支出政策都有效地减少了南亚的收入不平等。这些发现表明,社会支出和税收可以作为发展中国家收入再分配的政策工具。研究结果还表明,增加社会支出、增加直接税和更多地依赖外债可以改善收入分配。基于研究结果,该地区税收水平低、直接税、非正规经济规模大、税收管理薄弱等特点,应更多地依赖直接税和社会支出政策作为收入再分配的主要工具。JEL分类:H2, H5, i3如何引用:Khan, S., & Padda, i.u.(2021)。税收和社会支出政策对收入分配的影响:来自南亚的证据。生物工程学报,20(2),xx - xx。https://doi.org/10.15408/etk.v20i2.18121。
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来源期刊
Etikonomi
Etikonomi ECONOMICS-
自引率
12.50%
发文量
29
审稿时长
12 weeks
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