Taxation And Economic Growth In The DRC: An Empirical Study Based On The ARDL Model

ibrahim KANDE YERO

Abstract


This study examines the impact of tax revenues on economic growth in the Democratic Republic of Congo (DRC) over the period 1980–2023. Using the ARDL (AutoRegressive Distributed Lag) approach, the research assesses short- and long-term effects of tax revenues, public and private investments, foreign direct investment (FDI), and inflation on the economic growth rate. The findings reveal that tax revenues do not significantly affect growth in the short term but have a positive impact in the medium and long term. Public investment shows a negative effect, while private investment and FDI positively influence growth in the long run. Inflation appears slightly positive. Stationarity and cointegration tests validate the ARDL model. These results highlight the need for efficient management of tax revenues and prudent public investment choices to foster sustainable growth in the DRC.


Keywords


taxation, economic growth, ARDL, DRC, tax revenues, investments, cointegration.

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DOI: http://dx.doi.org/10.52155/ijpsat.v55.2.7853

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