238544

Estimating Optimal Level of Taxation for Growth Maximization in MOROCCO

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Last updated: 05 Jan 2025

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Abstract

What is the optimal tax burden rate that maximizes economic growth
in Morocco? To tackle this matter, this article aims to model the 
optimal tax rate in Morocco during the period 2000-2019, by using 
Scully's model. The results of the estimation show that tax revenue 
around 23.4 percent of GDP maximizes the growth rate. It is very 
lower than the actual applied rate (27%). This situation reveals that 
Morocco is situated in the prohibitive side of Barro's curve and the 
taxation is “unnecessary" and even degrading for growth and 
competitiveness.

DOI

10.21608/ijmsbe.2022.238544

Keywords

tax burden rate, Economic growth, Laffer curve, SCULLY model, Threshold effect

Authors

First Name

Rachid

Last Name

BAHLOULA

MiddleName

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Affiliation

Département des Sciences Economiques, Université Mohammed V, Faculté des Sciences Juridiques et Economiques, Souissi, Morocco

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Volume

5

Article Issue

1

Related Issue

34273

Issue Date

2022-06-01

Receive Date

2022-05-21

Publish Date

2022-06-01

Page Start

14

Page End

31

Print ISSN

2735-5438

Online ISSN

2735-5446

Link

https://ijmsbe.journals.ekb.eg/article_238544.html

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https://ijmsbe.journals.ekb.eg/service?article_code=238544

Order

238,544

Type

Original Article

Type Code

1,998

Publication Type

Journal

Publication Title

International Journal of Multidisciplinary Studies on Management, Business, and Economy

Publication Link

https://ijmsbe.journals.ekb.eg/

MainTitle

Estimating Optimal Level of Taxation for Growth Maximization in MOROCCO

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Article

Created At

23 Jan 2023