Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: What can Tax Revenues tell us about the Economic Activity of Regions?
Issue: Vol. 9, No 1, 2016
Published date: 03-2016 (print) / 03-2016 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Jarmila Zimmermannova
Jolana Skalickova
Jan Siroky
Keywords: VAT, Income Taxation, Macroeconomic Indicators, Regions, Czech Republic
DOI: 10.14254/2071-789X.2016/9-1/8
Index PUBMS: 30609246-0297-11e8-94c4-fa163e5d4f72
Language: English
Pages: 114-128 (15)
JEL classification: E62, H25, H71, R11
Website: http://www.economics-sociology.eu/?386,en_what-can-tax-revenues-tell-us-about-the-economic-activity-of-regions-
Abstract

The main goal of this paper is to provide an analysis of the relationships among selected indicators of economic activity of regions (GDP, unemployment) and regional tax revenues obtained from taxes imposed on economic activity (VAT, income taxation) in the Czech Republic, with a detailed analysis of VAT. Our methodology is based on correlation analysis (both the Pearson’s and the Spearman’s correlation coefficients) using data from the official statistics of the Czech Republic. The main idea of the paper is that regional tax revenues should give us a picture of the economic activity of companies, residents and entrepreneurs in these regions. Based on the results, we can say that there is a statistically significant positive relationship between regional VAT revenues and the value of regional GDP, and a statistically significant negative relationship between regional income taxes revenues and regional unemployment.