The Impact of Ordinary Taxes on Fostering Economic Development in Algeria (2000–2021)

Abstract

Research Question: The study investigates the efficacy of Ordinary taxes (non-hydrocarbon) in fostering economic development in Algeria. Motivation: The study seeks to emphasize a persistent issue afflicting the economies of oil-producing nations in this region, an issue that policymakers may neglect due to their generalized perspective on taxation without recognizing its origins. It aims to rectify this vulnerability as a safeguard against fuel price variations and to foster economic stability, alleviating the impacts of such volatility. Idea: The core idea is to assessing the impact of Ordinary taxes on the nation's economic growth from 2000 to 2021. Data: Data for the study variables were obtained from the annual reports of the Central Bank of Algeria (https://www.bank-of-algeria.dz), the World Bank (https://www.worldbank.org), and statistics from the National Statistical Office of Algeria (https://www.ons.dz). Tools: This study was accomplished by a multivariate linear regression model utilising the examined variables. Findings: The study identified a detrimental effect of the standard taxation rates on the Algerian economy, indicating the inadequacy of this taxation in fostering economic development. This results from the imposition of rates beyond the ideal tax thresholds. Contribution: This study distinguishes itself by examining the effects of Ordinary taxes on economic development in Algeria, a North African nation reliant on oil exports.