The Role of Sanction on Effectiveness of Total Tax on Foreign Savings in Iran

Document Type : Original Article

Authors

1 associate professor at the University of Shiraz, Iran.

2 Department of Economics, University of Shiraz, Iran.

Abstract

Considering the fact that governments are always looking to increase the amount of foreign savings and their share of tax revenue from the total income, therefore this paper investigates the role of sanctions on effectiveness of total tax on foreign savings in Iran’s economy during the period 1391-1352. Utilized function is linear and utilized technique is ordinary least squares (OLS). To demonstrate the effectiveness of international sanctions during the 80s, in the function, the virtual variable has been used that the coefficient for this variable is negative and it is statistically significant. Inflation rate and per capita GDP are used as explanatory variables. Estimation results show that by increasing the total tax, foreign savings increase which confirms the Plyz hypothesis In addition to the general level of prices, foreign savings reduce and by increasing per capita gross domestic product, foreign savings increase.

Keywords

References

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International Journal of Resistive Economics
Volume 6, Issue 1
January 2018
Pages 17-29

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History

  • Receive Date: 12 July 2017
  • Revise Date: 15 October 2017
  • Accept Date: 09 December 2017

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