Net product taxes (% GDP) Net product taxes (net indirect taxes) are the sum of product taxes minus subsidies. Product taxes are those taxes owed by producers on the production, sale, purchase, or use of goods and services. Subsidies are current account subsidies granted by public administrations to private enterprises and unincorporated public enterprises. Brazil's tax burden grew from 29% of GDP in 1998 to 35% in 2004, reducing public investment from 1.1% to 0.5% of GDP from 1988 to 2004. As a result, it is assumed that the more the higher the level of the tax burden, the greater the negative value. impact of growth in Brazil. Public consumption expenditure (% GDP) Public final consumption expenditure (formerly general government consumption) includes all current government expenditure for the purchase of goods and services (including compensation of employees). It also includes most defense and national security spending, but excludes government military spending that is part of public capital formation. (World Bank) ECG naturally plays an important role in its contribution to economic growth and is hypothesized to share a positive relationship with growth. Agriculture, value added (% of GDP) Agriculture includes forestry, hunting and fishing, as well as the cultivation of crops and livestock production. Value added is the net output of an industry after adding all outputs and subtracting intermediate inputs. It is calculated without deductions for the depreciation of manufactured goods or for the depletion and degradation of natural resources. Brazilian agriculture is well diversified and the country is largely self-sufficient in food. Brazil is a net exporter of agricultural and food products which...... middle of paper ......Results and findingsThis section presents the results and explanation of the 4 regressions. To determine whether the results align with economic theories, two specific regressions will be fitted based on growth theories and previous empirical results. Explanations will be provided for unexpected or insignificant results. The models adopt a general to specific concept to understand the quality and effectiveness of the Brazilian economy through consolidated growth theories.4.1: Regression 1The first regression consists of a general model in which all variables are taken into account to distinguish the synergy of every fiscal aspect and non-fiscal effect on growth. Since the GCE has a strong correlation with urbanization (URB) and its slow impact on the economy, it lags by one year.
tags