A Study on the Effect of Fluctuations in Tax Revenues on Economic Growth in Iran

Economic growth has been concerned as a main economic goal by countries; therefore, understanding the factors Affecting it are important. Because of the extreme volatility in oil revenues in Iran, using of other income such as taxes is important in achieving the above objective. Due to fluctuations in fiscal policy, including taxes, the effect of these fluctuations on growth can help to achieve development goals in long-term. So this study examined the effect of fluctuations in tax revenues on economic growth for the period 1970-2013 using EGARCH-ARDL's model. The results showed that the fluctuation of tax revenues, however, has a negative coefficient, but in the short and long term has no significant effect on economic growth. But Statistics shows the tax revenues in the short and long term has a significant effect on growth.