The effect of tax on economic growth

The literature emphasizes the institutional characteristics of each nation as an explanatory factor of economic growth. Taxation and the efficient application of public resources also positively affect the lives of citizens. The objective of this article is to verify the impact of taxes on economic growth and the effects of its efficient application. It also sought to verify whether inflation, public spending, interest rates and those related to private enterprise freedom, property rights, corruption and bureaucracy influence the performance of economies. The sample consisted of 219 countries in the years 2000 to 2016. The results suggest that excessive tax burden and bureaucracy negatively impact economies and their effects are reduced in the long term by the efficient management of public resources. They also indicated that the effects of property, economic freedom and interest rates are positive in growth and quality of life in the long run.