Empirical Analysis of the Contribution of Vat for Economic Development and Social Spending in Ethiopia
| dc.contributor.advisor | P., Ulaganathan(Dr.) | |
| dc.contributor.author | Alemu, Dakito | |
| dc.date.accessioned | 2021-06-22T13:18:05Z | |
| dc.date.accessioned | 2023-11-04T07:58:15Z | |
| dc.date.available | 2021-06-22T13:18:05Z | |
| dc.date.available | 2023-11-04T07:58:15Z | |
| dc.date.issued | 2011-06 | |
| dc.description.abstract | This paper discussed some recent critical literature on value-added tax (VAT) in Ethiopia relating to its contributions for economic development and its impact on the Social Spending in Ethiopia. The study employed the tools of quantitative empirical analysis technique to evaluate the contribution of VAT for the development of Ethiopia economy. The generic central objective is to examine the contribution of VAT for the development of Ethiopia economy and its impact on social spending, equity. The tools of empirical analysis used are multiple regression models as abstractions of the respective sectors considered in the study and also descriptive statistics. The study considered a vector of economic Development indicators as dependent variables and regressed each on VAT revenue proceeds and other income (loan, donation, grant, taxes excluding VAT revenue, and others) of Ethiopia State for the study period (1 995-2002 E.C or 2003 /04 - 2009110 G.C). The state economy is dis aggregated into five strategic economic sectors in the development process, and multiple regression models specified to enhance isolated analysis of each sector. Development aspects that are considered include infrastructural development, education sector development, agricultural and natural resource development, health sector Development and other development sectors. Moreover, in order to make clear decision and summarize the study, the summation of all capital expenditure on the respective sectors were taken and regressed. The analysis showed that, except education sector, V AT revenue contributed positively for the development of the respective sectors. On the aggregate (model VI), the analysis showed that VAT revenue had a considerable contribution for the development of the economy during the period under study. However, the contributions are statistically significant only to health and agricultural and natural resource development sectors. Therefore, it can be said that, the V AT tax revenue was unable to neutralize the progressivity of V AT tax levy in Ethiopia because its unsystematic exemptions, tax structure, and tax system. Thus, the study concludes that various sectors of the economy of Ethiopia are yet to benefit significantly from V A T revenue expenditure of the state government Consequently, the paper calls for equity in sect oral spending of VAT proceeds in Ethiopia State in order to ensure balanced development and sustainability of the emerging mega city status of the state. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/26923 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Analysis of the Contribution | en_US |
| dc.subject | Economic Development | en_US |
| dc.title | Empirical Analysis of the Contribution of Vat for Economic Development and Social Spending in Ethiopia | en_US |
| dc.type | Thesis | en_US |