Tax Competitiveness, Efficiency and Economic Growth: Case of Morocco

Abstract

In recent decades, tax competitiveness and particularly, in a context of trade and financial liberalization, has been a central issue in terms of approaches to analyzing its level, on the one hand, and measuring its degree of efficiency on the other. . Thus, Morocco, a country with a mainly tax budget, has undertaken a set of tax reforms in recent years in order to make the best use of the potential in terms of public resources and to improve the level of State revenue. In this context fits this work whose objective is to evaluate the efficiency of tax revenues by using a non-parametric data nesting analysis, called Data Envelopment Analysis (DEA), with a sample of 24 countries following in cross-section for the year 2020. The determination of efficiency scores is based on an input-oriented method with VRS, with variable returns to scale. Overall this method evaluates the modification of the volume of input without modification of the volume of output. The results show that the level of fiscal pressure in Morocco observed is not efficient compared to the countries in the sample. Also, the results show that the efficiency scores are low for Mexico, Colombia, Turkey and Morocco. However, the most efficient countries (China, Brazil, Indonesia, and South Africa) are those with the highest fiscal pressures and they are the best performers (with a score equal to unity ). Morocco's score is 0.713 (71.3%), which means that we could be able to increase its inputs by (29.7%) to produce the same outputs and to operate according to the best practices observed.

 Keywords: Data Enelopement Analysis, Technical Efficiency, Scoring, Efficiency Frontier, Returns to Scale

JEL Classification : B23, M16, M11, M21, O31

Paper type: Empirical research