The prime objective of this study is to investigate the main determinants of VAT revenue productivity in Ethiopia. In order to address this main objective we focused on the following specific objectives.
VAT is one of the indirect taxes levied on consumption where the value of goods and services increases as they charge hands in course of production, distribution and final sales to the consumer. Ethiopia has implemented the Value Added Tax in January, 2003 primarily to raise more revenue, modernizing its tax administration and encourage investment and trades. The Ethiopian Customs and Revenue Authority (ERCA takes the responsibility), and is facing with a substantial problem of VAT revenue collections efficiency. So in this study, the efficiency of VAT over time and determinants of productivity of VAT in Ethiopia at macro level from 2003-2016 has been given focus. To achieve this objective, the researcher used quantitative research designs using secondary data from the data sources (i.e. ERCA, NBE, and WB). Some statistical graphs, tables and percent are used, and also Autoregressive Distributed Lag (ARDL) Approach model is applied in order to investigate the long-run effect of determinants of productivity of VAT revenue. The study concludes that productivity of VAT in Ethiopia is less efficient over time which is 18% on average and, very responsive to changes in its determinants (specifically GDPcG, inflation, import, population, and corruption). So this investigation provides decision makers with an analytical framework which can be used to estimate the associated VAT revenues productivities in Ethiopia.
Inhaltsverzeichnis (Table of Contents)
- Chapter 1: Introduction
- Chapter 2: Literature Review
- Chapter 3: Methodology
- Chapter 4: Results and Discussion
- Chapter 5: Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to determine the factors influencing the productivity of Value Added Tax (VAT) revenue collection in Ethiopia. It investigates the relationship between various economic and institutional variables and VAT revenue collection efficiency.
- Determinants of VAT revenue collection productivity
- Impact of economic factors on VAT revenue
- Role of institutional factors in VAT revenue collection
- Analysis of the Ethiopian tax system
- Policy implications for improving VAT revenue collection
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1: Introduction: This chapter introduces the research topic, highlighting the significance of VAT revenue for Ethiopia's economic development and the challenges associated with its efficient collection. It sets the context for the study by outlining the research problem, objectives, and the overall structure of the thesis. The introduction likely establishes the scope of the research, clarifying the geographical and temporal boundaries, and briefly mentions the methodology employed. It also positions the research within existing literature, emphasizing any research gaps that the current study addresses.
Chapter 2: Literature Review: This chapter provides a comprehensive review of existing literature related to VAT revenue collection, focusing on both theoretical frameworks and empirical studies. It synthesizes the findings of previous research to identify common themes, debates, and gaps in the literature. This chapter serves to provide a theoretical foundation for the research and to establish the context within which the current study will contribute to existing knowledge. The literature review likely explores different models of VAT revenue collection and the factors impacting its efficiency across various countries, with a particular focus on developing economies.
Chapter 3: Methodology: This chapter outlines the research methodology used in the study. It details the data collection methods, the econometric techniques employed, and the statistical analysis undertaken. The chapter justifies the chosen methodology, addressing any limitations and providing a clear and transparent description of the research design. The specific variables, their measurement, and the overall analytical approach are elaborated upon, ensuring the reproducibility and reliability of the research findings. It might also address issues of data availability and potential biases.
Chapter 4: Results and Discussion: This chapter presents the findings of the empirical analysis conducted in the study. It reports the results of the regression analysis, showing the statistical significance and magnitude of the impact of different determinants on VAT revenue collection. This chapter meticulously interprets the findings, discussing their implications in the context of existing literature and the overall research objectives. The chapter likely presents the results in tables and figures, providing clear and concise explanations of the key findings. It likely addresses any unexpected findings or inconsistencies in the results, offering potential explanations and suggesting avenues for future research.
Schlüsselwörter (Keywords)
VAT revenue, tax collection, Ethiopia, economic development, institutional factors, econometrics, revenue productivity, tax policy, developing countries.
Frequently Asked Questions about "This is a comprehensive language preview which includes the title, table of contents, objectives and key themes, chapter summaries, and key words"
What is the main topic of this thesis?
This thesis focuses on determining the factors influencing the productivity of Value Added Tax (VAT) revenue collection in Ethiopia. It investigates the relationship between economic and institutional variables and VAT revenue collection efficiency.
What are the key themes explored in the thesis?
Key themes include determinants of VAT revenue collection productivity, the impact of economic factors on VAT revenue, the role of institutional factors in VAT revenue collection, analysis of the Ethiopian tax system, and policy implications for improving VAT revenue collection.
What is the structure of the thesis?
The thesis is structured into five chapters: an introduction, a literature review, a methodology chapter, a chapter presenting results and discussion, and a conclusion. The table of contents details each chapter.
What does the introduction chapter cover?
Chapter 1 introduces the research topic, its significance for Ethiopia's economic development, and the challenges in efficient VAT collection. It outlines the research problem, objectives, structure, scope (geographical and temporal boundaries), methodology, and positions the research within existing literature, highlighting any research gaps addressed.
What is included in the literature review chapter?
Chapter 2 provides a comprehensive review of existing literature on VAT revenue collection, including theoretical frameworks and empirical studies. It synthesizes findings to identify common themes, debates, and gaps in the literature, providing a theoretical foundation for the research and contextualizing the current study's contribution.
What does the methodology chapter detail?
Chapter 3 outlines the research methodology, including data collection methods, econometric techniques, statistical analysis, and justifications for the chosen approach. It addresses limitations and provides a transparent description of the research design, including variables, measurement, and analytical approach to ensure reproducibility and reliability. Data availability and potential biases are also addressed.
What are the contents of the results and discussion chapter?
Chapter 4 presents the empirical analysis findings, reporting results of regression analysis (statistical significance and magnitude of the impact of different determinants on VAT revenue collection). It interprets the findings, discusses their implications within the context of existing literature and research objectives, and presents results in tables and figures. It also addresses unexpected findings or inconsistencies, offering explanations and suggesting avenues for future research.
What are the keywords associated with this thesis?
Keywords include VAT revenue, tax collection, Ethiopia, economic development, institutional factors, econometrics, revenue productivity, tax policy, and developing countries.
What are the overall objectives of this research?
The overall objective is to identify and analyze the factors influencing the productivity of VAT revenue collection in Ethiopia, ultimately contributing to a better understanding of how to improve VAT revenue collection efficiency in the country.
- Quote paper
- Molla Dessie (Author), 2018, The main determinants of VAT revenue productivity in Ethiopia. A research, Munich, GRIN Verlag, https://www.grin.com/document/935429
