Determinants of Taxation in Algeria
An Econometric Study for the Period (2004-2022)
Abstract
In this study, we analyze the impact of macroeconomic variables on direct tax revenues
in Algeria, which are considered determinants of taxation, using data, we study empirically during
the period 2004-2022.Each of the effects of six variables are GDP, public spending, unemployment
rates, savings, investment and inflation rates using multiple regression rates method, Calculation of
explanatory variables and dummy variable. In conclusion, the analysis confirmed in first model that
the strongest correlation is between direct tax revenues and direct investments and unemployment
rate, and there is a negative correlation between GDP and direct tax, this explains that the
development in GDP is in sectors that do not produce direct tax base, which is the hydrocarbon
sector, which means that Algeria is still in the stage of dependence on this sector. The study also
found that taxes are influenced by economic factors to varying degrees.
In this study, we analyze the impact of macroeconomic variables on direct tax revenues
in Algeria, which are considered determinants of taxation, using data, we study empirically during
the period 2004-2022.Each of the effects of six variables are GDP, public spending, unemployment
rates, savings, investment and inflation rates using multiple regression rates method, Calculation of
explanatory variables and dummy variable. In conclusion, the analysis confirmed in first model that
the strongest correlation is between direct tax revenues and direct investments and unemployment
rate, and there is a negative correlation between GDP and direct tax, this explains that the
development in GDP is in sectors that do not produce direct tax base, which is the hydrocarbon
sector, which means that Algeria is still in the stage of dependence on this sector. The study also
found that taxes are influenced by economic factors to varying degrees.
Keywords: Tax; Determinants of Taxation; Macroeconomic Variables; Algeria
