Impact of fiscal policy on economic growth in Iran with emphasis on the role of Value Added Tax (VAT)

摘要

Value added tax as main government revenues in most countries is the important variable in fiscal policies.The aim of this research is to examine the effect of value added taxes on GDP as economic growth for Iraneconomy. In this regard we use annually data for 1979-2009 using auto regressive distributed lags (ARDL).Results showed that value added taxes have significant effect on real output for Iran and it means value addedtaxes as a fiscal policy tool have useful performance in this country. Also government expenditure,consumption, investment and net exports have significant effects on GDP. Other related investigations are left.