impact-of-direct-taxes-on-economic-growth-in-republic-of-north-macedonia 2019 1 The main objective of this paper is to investigate and determine the nature of the relationship between
direct taxes and economic growth in Republic of Macedonia, utilizing quarterly time series covering
time spin 2000 – 2015. Furthermore, findings reveal that data are non-stationary in their level and
stationary in their first difference based on two test for unit root Augmented Dickey Fuller and Phillips
Perron test, respectively. Moreover, Johansen test for co-integration indicate the rank number as one,
while evidence from Vector Error Correction model suggest negative and significant effect of Personal
Income tax on Real GDP, while Corporate Income Tax is showing positive and insignificant effect on
real GDP in Macedonia. Finally, such results can contribute as further recommendation for the
Macedonian tax policymakers in the future, since tax rate cuts even though encourage employment,
savings and investment, if are not financed by immediate expenditure cuts, will increase budget deficit,
therefor reducing national saving and raise interest rates in the long-run, thus reducing positive direct
impact on economic growth.

]]> Personal Income Tax, Corporate Tax, Granger Causality, VECM 2019-06-30 https://tefmj.ibupress.com/articles/impact-of-direct-taxes-on-economic-growth-in-republic-of-north-macedonia 1 29-35 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/172/5.pdf / /

]]> Liza Alili Sulejmani International Balkan University – Skopje true Ahmet Lokce International Balkan University – Skopje 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com