Advanced empirical research based on structural equation modeling (SEM) regarding the impact of tax revenue on GDP dynamics at EU-28 level


  • Cristi Spulbar University of Craiova
  • Mohammad Ehsanifar Islamic Azad University, Arak
  • Ramona Birau Constantin Brancusi University of Targu Jiu
  • Arezoo Babaie Islamic Azad University, Arak
  • Daniel Iulius Doagă University of Craiova



taxation, structural equation modeling (SEM), economic growth, fiscal policy, GDP, regression analysis


The main objective of this empirical study is to investigate the impact of tax revenue on GDP dynamics at EU-28 level based on structural equation modeling (SEM). We applied structural equation modeling (SEM) which represents a multivariate statistical analysis technique used especially for analyzing structural relationships between measured variables and latent structures. Selected taxes are the following: environmental taxes, indirect taxes, social contributions, taxes on capital, taxes on labour, taxes on property, and direct taxes. The sample period includes a long time horizon during 2005-2017 for each member states of EU-28. Our empirical findings revealed the level of taxation exhibits an increased influence on GDP dynamics in case of EU-28 member states.

JEL Codes - C3; E62; O47; O52

Author Biographies

Cristi Spulbar, University of Craiova

Faculty of Economics and Business Administration

Mohammad Ehsanifar, Islamic Azad University, Arak

Department of Industrial Engineering, Arak Branch

Ramona Birau, Constantin Brancusi University of Targu Jiu

Faculty of Education Science, Law and Public Administration

Arezoo Babaie, Islamic Azad University, Arak

Department of Industrial Engineering, Arak Branch

Daniel Iulius Doagă, University of Craiova

Faculty of Economics and Business Administration


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How to Cite

Spulbar, C., Ehsanifar, M., Birau, R., Babaie, A., & Doagă, D. I. (2021). Advanced empirical research based on structural equation modeling (SEM) regarding the impact of tax revenue on GDP dynamics at EU-28 level. Scientific Annals of Economics and Business, 68(3), 285–307.