Correlation Between Asean Macro Tax Burden And Economic Growth

As a regional organization in Southeast Asia, ASEAN has become the world’s sixth largest economy, the fourth largest import and export trade area, and also one of the areas in developing countries that absorb lots of foreign direct investment stock. Currently, the Southeast Asian economy has become a hotspot for world economic growth. Singapore has become the first newly industrialized countries. Malaysia, Philippines and Thailand has been in the middle stage of industrialization, newcomer countries are still in the early stages of industrialization. With rapid economic growth, whether the current macro tax burden level of ASEAN countries is appropriate, whether tax burden has influence to the rapid economic growth, and whether the current tax policy is applicable, are problems to be considered in the process of regional integration, determine the space of tax policy coordination between member states. In order to give full play to the role of tax coordination to promote economic growth, and accelerate the tax coordination of China-ASEAN Free Trade Area, the studies on the association of ASEAN macro tax burden and economic growth is becoming more important. Based on the empirical research as the main research method, use the qualitative, quantitative and comparative analysis method, through numerous longitudinal comparison of developed countries, developing countries and regional crosswise comparison among member states, it is concluded the judgment of ASEAN countries tax burden level. Through the international comparisons of Macro tax burden by2004-2011, we can see that the macro tax burden level in ASEAN countries was significantly lower than in developed countries. Compared with the developed economies of Asia and other developing countries, the tax burden is not high.Panel VAR model is used to analyze the correlation between macro tax burden and economic growth. Taking the accuracy and availability of data into account, I select the dates of ten ASEAN countries in1995-2012as study objects. The results showed that the macro tax burden has no significant relationship with economic growth. It means the current tax system of south-east Asian nations is in line with the taxation neutral principle, but south-east Asian nations still has serious deficit, high inflation and other factors influencing the economic development, which need to increase economic adjustment.