THE IMPACT OF TAX AND EXPORT REVENUES ON THE GROSS DOMESTIC PRODUCT (GDP) OF THE STATE OF DENMARK IN 1994–2023
DOI:
https://doi.org/10.65886/ijde.v2i01.25Keywords:
Taxes, Exports, Gross Domestic Product (GDP), DenmarkAbstract
This study aims to examine the impact of taxes received and exports on the Gross Domestic Product (GDP) in Denmark from 1994 to 2023. Using a quantitative method involving multiple linear regression models, this study examined the simultaneous relationship of the two independent variables with economic growth. The data source was taken from the World Bank Indicators and analyzed following various steps of testing classical assumptions. The results of the regression show that both exports and tax revenues exert a positive and significant influence on GDP, with an R-squared value of 0.9821 indicating that the model can explain almost 98% of GDP variations. Additional tests such as VIF, Breusch-Pagan, Durbin-Watson, and Ramsey RESET were applied to assess the validity of the model. The results of the test indicated that there were no problems with multicollinearity or heteroscedasticity, although there were signs of autocorrelation that could be overcome through data processing. Overall, the results of this study confirm the importance of fiscal policy and the export sector in driving long-term economic growth in Denmark.
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