Jarmila Zimmermannova

Moravian University College Olomouc,

Olomouc, Czech Republic,

jarmila.zimmermannova@seznam.cz; jarmila.zimmermannova@mvso.cz

WHAT CAN TAX REVENUES TELL US ABOUT THE ECONOMIC ACTIVITY OF REGIONS?

Jolana Skalickova

Moravian University College Olomouc,

Olomouc, Czech Republic,

jolana.skalickova@mvso.cz

Jan Siroky

VŠB – Technical University of Ostrava,

Ostrava, Czech Republic,

jan.siroky@vsb.cz

Abstract.The main goal of this paper is to provide an analysis of the relationships among selected indicators of economic activity of regions (GDP, unemployment) and regional tax revenues obtained from taxes imposed on economic activity (VAT, income taxation) in the Czech Republic, with a detailed analysis of VAT. Our methodology is based on correlation analysis (both the Pearson’s and the Spearman’s correlation coefficients) using data from the official statistics of the Czech Republic. The main idea of the paper is that regional tax revenues should give us a picture of the economic activity of companies, residents and entrepreneurs in these regions. Based on the results, we can say that there is a statistically significant positive relationship between regional VAT revenues and the value of regional GDP, and a statistically significant negative relationship between regional income taxes revenues and regional unemployment.

Received: June, 2015

1st Revision: September, 2015

Accepted: December, 2015

DOI: 10.14254/2071- 789X.2016/9-1/8

JEL Classification: E62, H25, H71, R11

Keywords: VAT, Income Taxation, Macroeconomic Indicators, Regions, Czech Republic.