THE IMPACT OF THE EFFECTIVE TAX BURDEN AND GOVERNMENT SPENDING ON THE ECONOMIC GROWTH

The analysis of the relationships between the taxation measured by the traditional tax quota (TQ) and the economic growth is a subject of a lot of empirical works. Therefore the aim of the article is to verify the impact of the effective tax burden and the government spending on the economic growth in OECD countries in the period of 2005 - 2010. The taxation is expressed by the tax quota and World Tax Index (WTI) - an alternative designed by the authors of the article. From the methodological point of view, we use VAR model and generalized method of moments in the article. Concerning the impact of the taxation on the economic growth, it was not possible to confirm or refuse the theoretical hypothesis due to the statistical insignificance in case of use of the TQ. For the WTI, we find that there is noticeable negative impact of the effective taxation on the economic growth.