MACROECONOMIC DETERMINANTS OF THE TAX BURDEN IN THE EUROPEAN UNION: A SYSTEM GMM APPROACH
Makroekonomické determinanty daňového zaťaženia v Európskej únii: metóda systémového GMM
Published: 17.11.2025
https://doi.org/10.24040/aap.2025.22.spec.iss.47-58
Abstract: The issue of effective taxation remains a crucial economic and policy concern across the European Union. The aim of this paper is to explor the relationship between the tax burden and its key macroeconomic and structural determinants, emphasizing how economic development and market integration influence fiscal outcomes. The analysis employs annual panel data for 27 EU countries over the period 2000–2024 and applies the System Generalized Method of Moments (System GMM) to control for dynamics and potential endogeneity in the tax system. The results confirm a strong persistence of the tax burden, suggesting fiscal rigidity and gradual policy adjustment over time. Moreover, higher GDP per capita, greater trade openness, and a larger labor force are found to significantly increase the overall tax burden, reflecting the fiscal strength of advanced and integrated economies.
Keywords: tax burden, taxation, European union, GMM
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How to cite:
ANDREJKOVIČOVÁ, I. and BOBČEK, Z. Macroeconomic determinants of the tax burden in the European Union: a system GMM approach. Acta aerarii publici. Online. vol. 22 (2025), special issue, pp. 47 – 58. Available from: https://doi.org/10.24040/aap.2025.22.spec.iss.47-58 [accessed YYYY-MM-DD].