Nguyen Ngoc Son

Corporate income tax is an important tax for the state to regulate budget revenue and is an important tool for encouraging and promoting production and business development to create jobs. This study investigated the relationship and impact between corporate income tax and unemployment in Vietnam, China, and South Africa to investigate whether higher corporate income tax contributes to higher unemployment. Data on corporate taxation and unemployment rates from 2000 to 2020 are collected, and the VAR model, cointegration, and impulse response tests were applied to estimate the impact of taxation on the unemployment rates of developed, developing, and underdeveloped countries. The corporate tax and unemployment rates have a close relationship: South Africa, China, and Vietnam correspond to 82%, 54.3%, and 47%, and the majority of the model’s variables for the three countries are non-stationary at lag I(0), with the exception of the variable for China’s unemployment rate, which demonstrates that the probabilities of the model’s variables for Vietnam and South Africa are greater than the alpha of 0.05 and are, respectively, 0.6193, 0.7299, 0.3421, and 0.6347. Thus, variables have a lag after year, in this case, assuming that other factors remain unchanged if the corporate tax rate decreases by 1%, South Africa’s unemployment rate decreases by 10%. Similarly, Vietnam’s unemployment rate decreased by 1.1%, but China’s unemployment increased by 2.9%. The suggestion is that the government adjusts tax laws to better match micromanagement and regulate and balance the relationship between taxes and unemployment.

This study deals with the impact of national debt on gross domestic product growth, which plays an essential role in economic development when the debt-to-GDP ratio achieves the optimal public debt ratio. The goal of this study is to comprehend the relationship between government debt and GDP growth, which becomes increasingly essential for economic development as the debt-to-GDP ratio approaches the optimal threshold of public debt. The study applied regression threshold models, unit roots, and Pearson correlation tests to the data collected in Vietnam from 2000 to 2020 to determine the optimum national debt-to-GDP threshold. The results show that the correlation between national debt-to-GDP and GDP growth was 85.2%. All the variables are stationary at the first difference and lag after one year, and the 38% threshold is the best level of national debt for GDP growth. This study contributes to the theoretical enhancement of the current knowledge of the factors that offer the Vietnamese government a point of reference for policy recommendations to control national debt successfully.