Contents of the volume

2019, Volume 72 - Issue 2

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 02 May 2019

THE FELDSTEIN-HORIOKA PUZZLE AND THE GLOBAL FINANCIAL CRISIS: EVIDENCE FROM SOUTH AFRICA USING ASYMMETRIC COINTEGRATION ANALYSIS

Andrew Phiri

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THE CAUSAL IMPACT OF STOCK MARKET DEVELOPMENT ON ECONOMIC DEVELOPMENT IN THE UAE: AN ASYMMETRIC APPROACH

Abdulnasser Hatemi-J

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THE IMPACT OF THE DIVIDEND TAX IN SOUTH AFRICA: A DYNAMIC CGE MODEL APPROACH

Lumengo Bonga-Bonga, Jean Luc Erero

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MODELING THE VOLATILITY OF EXCHANGE RATE CURRENCY USING GARCH MODEL

Chaido Dritsaki

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AN EMPIRICAL ANALYSIS FOR THE US OF THE EFFECTS OF GOVERNMENT BUDGET DEFICITS ON THE EX ANTE REAL INTEREST RATE YIELDS ON THIRTY-YEAR AND TWENTY-YEAR TREASURY BONDS

Richard J. Cebula, Maggie Foley

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ACKNOWLEDGEMENT TO REFEREES

Amedeo Amato

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Lumengo BONGA-BONGA, University of Johannesburg, South Africa

Co-authors

Jean Luc ERERO, University of Johannesburg, South Africa

The Impact of the Dividend Tax in South Africa: A Dynamic CGE Model Approach

Pages

185-208

Abstract

This paper analyses the economy-wide impact of the dividend tax (DT) on the South African economy, which was increased from 10% to 15% by the government in 2012. The analysis was conducted using a dynamic computable general equilibrium (CGE) model of South Africa, which captured the observed structure of South Africa’s economy. The parameters of the CGE equations were calibrated to observed data from a social accounting matrix (SAM) for 2010. The simulation results show that the policy impact of increasing the DT has a positive effect on the reported macro-economic variables at the outset of this policy and in the near future.  For example, GDP is expected to increase by 0.059% and 0.601% in 2013 and 2019 respectively. Moreover, the simulation results show that the substitution effect dominate the income effect of the taxation of dividend for high skill labours in South Africa.

JEL classification

D33, D58, H25

Keywords

Dividend Tax, Secondary Tax on Companies, CGE Model, South Africa

Index

  1. Introduction
  2. Overview of the dividend tax in South Africa and selected countries
  3. Methodology
  4. Simulations and results
  5. Conclusion

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