Back Issues 11-20

TAX REVENUE, GOVERNMENT EXPENDITURE, GDP, AND BUDGET DEFICIT OF CHINA

Wunhong Su

School of Accounting, Hangzhou Dianzi University, Hangzhou, Zhejiang, China

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Chen Yin*

School of Accounting, Hangzhou Dianzi University, Hangzhou, Zhejiang, China;

*Corresponding Author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Kai-Ping Huang

Department of Business Administration, MBA Program in International Management,

Fu Jen Catholic University, Taiwan 

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Mongkon Loaworapong

Martin de Tours School of Management and Economics, Assumption University, Bangkok, Thailand

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Surasakdi Prugsamapz

Martin de Tours School of Management and Economics, Assumption University, Bangkok, Thailand

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Suwanna Kitseree

Martin de Tours School of Management and Economics, Assumption University, Bangkok, Thailand

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Chien-Jung Huang

Department of Marketing and Distribution Management,

National Pingtung University, Taiwan

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Abstract

This study investigates the relations among China’s tax revenue, government expenditure, budget deficit, and gross domestic product (GDP). The tax revenue is divided into direct and indirect taxes, while the government expenditure is divided into economic, social, and service expenditures. This study’s findings show significant relations among the direct tax, indirect tax, economic expenditure, social expenditure, service expenditure, GDP, and the budget deficit of China from 2000 to 2018. Direct tax and indirect tax have a significantly positive impact on the GDP. In contrast, indirect tax, economic, and social expenditure significantly affect the budget deficit.

Keywords: Tax revenue; Government expenditure; GDP; Budget deficit; China