Fiscal policy shapes economic growth: Trade taxes for poor, income taxes for rich.
The article explores how fiscal policies impact economic growth. It looks at data from different time periods and countries, focusing on public investments and taxes. The researchers found that poorer countries rely more on trade taxes, while richer countries use income taxes more. They also discovered that a country's population size affects its fiscal policies. Lastly, investing in transport and communication consistently boosts economic growth, while the effects of taxes on growth are harder to pinpoint.