Influence of Public Revenues on Economic Growth The Case of the Republic of North Macedonia

  • Aleksandar Nikoloski Ss. Cyril and Methodius University- Faculty of Economics- Skopje, North Macedonia
Keywords: public revenues; economic growth; Republic of North Macedonia


The economy in each country performs different functions of a political, social and economic nature, in order to improve social and economic well-being. Public revenues affect economic growth by meeting various government needs. Taxes fully create discouraging effects on economic growth, especially those that reduce the incentive to invest in physical and human capital and innovation. The purpose of this research is to see the connection between public revenues and economic growth in the Republic of Macedonia and to determine the impact of tax and non-tax revenues on the growth of the country. With the help of econometric modeling, it was found that the observed public revenues as a whole affected the economic growth with 90, 2%, which is a high percentage. Individually, customs duties, VAT and direct taxes have a positive impact, and non-tax revenues and contributions negatively affect the economic growth of the republic.


Download data is not yet available.


Acemoglu D., Thierry V. and James R. (2004), “Kleptocracy and Divide-and-rule: A model of personal rule”, Jurnal of the European Economic Association, p.163-190.
Arnold J. (2008), “Do tax structures affect aggregate economic growth?”, Empirical evidence from a panel of OECD Countries, OECD Economics Department Working Papers, No. 643, OECD Publishing, p. 6-18.
Arisoy I. and Unlukaplan I. (2010), “Tax composition and growth in Turkey: An empirical analysis”, International Research Journal of Finance and Economics, No.59, p.5-13.
Barbone L. and Polackova H. (1996), “Public Finances and Economic Transition”, Policy Research Working Paper No.1585, The World Bank Europe and Central Asia Country Department, p.2-35.
Barro R. (1979), “On the Determination of the Public Debt. Journal of Political Economy”, 87, p.940- 960.
Barrios S. and Schaechter A. (2008), “The Quality of Public Finances and EconomicGrowth”, European Economy Economic Paper 337, Brussels: European Commission, p. 8-32.
Bhartia H.L. (2009), “Public Finance”. 14th Edition, New Delhi: Vikas Publishing House PVT Limited, p.5-32.
Bassanini A., Scarpetta S. and Hemmings P. (2001), “Economic Growth: The Role of Policies and Institutions”, Panel Data Evidence from OECD Countries, OECD Economics Department Working Paper, No. 283, p. 20-42.
Gacanja E. (2012), “Tax revenue and economic growth: an empirical case study of Kenya”, Unpublished MBA Project, University of Nairobi, p.10-15.
Getachew W. (2018), “The Relationship between Inflation and Economic Growth in Ethiopia”, Budapest International Research and Critics Institute-Journal (BIRCI-Journal), Vol. 1, No. 3, p. 264-265.
Lutfunnahar B. (2007), “A Panel Study on Tax Effort and Tax Buoyancy with Special Reference to Bangladesh”, Working Paper 715: Policy Analysis Unit (PAU) Research Department Bangladesh Bank.
Munir F. And Scaudhry S.I. (2010), “Determinants of Low Tax Revenue in Pakistan”, Pakistan Jurnal of Social Scienses, Vol. 30, No. 2, p. 441- 443.
Musgrave R.A. and Musgrave P.B. (2006), “Public Finance in Theory and Practice”, New Delhi: Tata Mc Graw- Hill Publishing Company Limited, p.20-26.
Nyamongo C. B. (1987), “Government Revenue and expenditures In Kenya With Emphasis On Trends And Compositions”, International Academic Journal of Information Sciences and Project Management, University of Nairobi, Kenya, p. 89-101.
Paolo D., Joao T.J (2017), How Buoyant is the Tax System? New Evidence from a Large Heterogeneous Panel, IMF Working Paper, WP/17/4, p.19-20.
Suryani M, Suhatman R. (2020), “The Effect of Government Expenditures, Domestic Investment, Foreign Investment to the Economic Growth of Primary Sector in Central Kalimantan, Budapest International Research and Critics Institute- Journal (BIRCI- Journal), Vol. 3, No. 3, p. 1695-1696.
Sen A. (2011), “Oil Revenues and Economic Development: The Case of Rajasthan, India”, Oxford Institute for Energy Studies, p. 10-20.
Turnovsky S. and Fisher W. (1995), “The composition of Government Expenditure and its Consequences for Macroeconomic Performance”, Journal of Economic Dynamics and Control, p.740-750.
Winata B.H. (2020), “Development of an Integrated Inquiry Model the Value of Thought Economy of Mohammad Hatta in Social Studies Subject”, Budapest International Research and Critics in Linguistics and Education (BirLE Journal), Vol. 3, No. 2, p. 1013-1014.
Wildmalm F. (2001), “Tax structure and growth: are some taxes better than others?”, Public choice, 107, p. 200-220.
How to Cite
Aleksandar Nikoloski. (2020). Influence of Public Revenues on Economic Growth The Case of the Republic of North Macedonia . Konfrontasi: Jurnal Kultural, Ekonomi Dan Perubahan Sosial, 7(3), 191-204.