Publication
Fiscal Structure and Economic Growth in the EU: A Dynamic Panel Data Approach
| Summary: | This study analyzes the impact of tax structure on economic growth in the 27 Member States of the European Union, from 2010 to 2022. We use dynamic panel econometric models, namely Generalized Method of Moments (GMM) models with instrumental variables, which allow us to address the dynamic nature of growth. Two economic growth equations were estimated; the first focuses on more classical determinants: public investment, education, health and innovation. The second on tax composition and institutional quality. The results show that workers with advanced education contribute positively to economic growth, consumption and capital taxes contribute positively to growth, while property taxes have a negative impact. This work offers a contribution to the European discussion to promote sustained economic growth and fiscal harmonization. |
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| Main Authors: | Ribeiro, Alexandre Almeida |
| Subject: | Crescimento económico Crescimento Europeu Dados em Painel Estrutura Fiscal Impostos Método dos Momentos Generalizado Modelo Dinâmico PIB UE-27 Dynamic Model Economic Growth European Growth |
| Year: | 2025 |
| Country: | Portugal |
| Document type: | master thesis |
| Access type: | open access |
| Associated institution: | Universidade da Beira Interior |
| Language: | English |
| Origin: | uBibliorum |
| Summary: | This study analyzes the impact of tax structure on economic growth in the 27 Member States of the European Union, from 2010 to 2022. We use dynamic panel econometric models, namely Generalized Method of Moments (GMM) models with instrumental variables, which allow us to address the dynamic nature of growth. Two economic growth equations were estimated; the first focuses on more classical determinants: public investment, education, health and innovation. The second on tax composition and institutional quality. The results show that workers with advanced education contribute positively to economic growth, consumption and capital taxes contribute positively to growth, while property taxes have a negative impact. This work offers a contribution to the European discussion to promote sustained economic growth and fiscal harmonization. |
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