Year: 2025
Type: article
Abstract: The purpose of this research is to analyze the impact of indirect value-added tax and direct income tax on economic growth in Colombia from 1970 to 2023. To carry out this study, we use an endogenous economic growth model that includes consumption and corporate profit taxes. As an empirical strategy, we use Johansen's (1995) cointegration methodology, which focuses on the estimation of a vector error correction model. The main results reveal that an increase in direct tax collection positively correlates with higher economic growth. On the other hand, it is observed that an increase in indirect tax collection causes a decrease in economic expansion. This suggests caution if tax collection is to be increased.
Author: Carlos David Alape Gamez
Institution: Universidad de Los Andes
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409627679