Structural Impacts of the Tax System on Economic Growth in the Republic of Armenia

Interactions between types of taxes that form the basis of the tax system of the Republic of Armenia and the Gross value added were analyzed in the article. The main objective of the analysis was to observe the behavioral impacts of different types of taxes: corporate income tax, personal income tax, value added tax and excise tax on the growth of the country's GDP according to their functional significance, the main trends and the most typical aspects of these processes were revealed. In this context, it is very important to identify the amount of financial resources the state collects from the economy and allocates to the state treasury in the form of taxes and fees, as well as the distribution of the tax burden on economic sectors, households and others participating in economic processes. In order to find out the nature of the observed relationships and the directions of influence, the ARDL (autoregressive distributed lag) model was used, the use of which allowed to distinguish both short-term and long-term interrelations between observed indicators. As a result of the given analysis, the positive impacts of indirect taxes and the negative impacts of direct taxes on the economic growth were identified and quantified. Nevertheless, the short and long-term impacts of personal income tax on the economic growth is controversial and ambiguous.