Ali Akbar Arabmazar; Hojjat Izadkhasti; Sarah Yavari
Abstract
Value-added tax is levied at various stages of the import, production, distribution, and consumption chain based on a percentage of the value of goods sold or services provided at each stage and ultimately paid by the final consumer. Structural transformation is considered as one of the variables ...
Read More
Value-added tax is levied at various stages of the import, production, distribution, and consumption chain based on a percentage of the value of goods sold or services provided at each stage and ultimately paid by the final consumer. Structural transformation is considered as one of the variables affecting the efficiency of VAT collection often has led to an increase in the share of services in the total value added of the economy. In this study, the effect of structural transformation on the efficiency of VAT collection in provinces of Iran during 2008-2016. The results indicate that the ratio of value added of the service sector to total value added has a negative and significant effect on the efficiency of VAT collection. The value-added ratio of the services sector to the value added of the industrial sector has a negative and significant effect on the efficiency of VAT collection. Also, GDP growth per capita, Gini coefficient and the interval of value-added ratio of the agricultural sector of total value added has a negative effect on the efficiency of VAT collection. The rate of urbanization and the ratio of construction expenditures to total government expenditures have a positive and significant effect on the efficiency of VAT collection in the provinces.
hojjat izadkhasti
Abstract
Regional inequality has economic, social and cultural dimensions. One of the main concerns of planners and policymakers in economic development programs is reduction of poverty and inequality based on provincial income per capita. Therefore, through budget allocation tools, the government can reduce ...
Read More
Regional inequality has economic, social and cultural dimensions. One of the main concerns of planners and policymakers in economic development programs is reduction of poverty and inequality based on provincial income per capita. Therefore, through budget allocation tools, the government can reduce inequalities in provincial incomes per capita and create more balance among provinces. In this paper, the effects of inequality in the allocation of provincial budget on provincial inequalities are estimated using dynamic panel data method for period 2005-2016 in 30 Iranian provinces. The estimation results indicate that the increase in inequality of provincial capital formation budget has reduced inequality in provincial income. This result indicates an increase in government investment in infrastructure and a higher share of government development budget in less-developed provinces. Also, with increasing inequality in provincial current per capita budget, inequality in regional income has increased; because an increase in inequality of current per capita budget in the provinces can lead to unbalanced public service provision and an increase in inequality of income per capita.