One of tools that use governments to reach the objective of the population well-being stays the expenses that they hire in the different country socioeconomic sectors. To reach it, in a side, the governments must mobilize the necessary returns to finance these expenses. In other side, they must encourage the foreign direct investments in the goal to increase the internal productivity. The aim of this paper is to value in what measure the foreign direct investments are sensitive to the tax system. We used decomposition method and error correction method in panel data to reach this aim. The results show that in all countries except Niger, the tax system causes in Granger sense the FDI. It shows that these countries understood that to attract FDI, best is to apply a fiscal politicy that encourages foreign investments. Tax system influences the fluctuations of the FDI negatively. Increase 1% in tax rate, the FDI decrease 0,48% in long term and 0,61% short-term. This result shows that the variation of FDI for these countries is very sensitive to the tax system.
The effects of the fiscal pression on the economic growth were subject of proceedings for a long time between economists. For some, the fiscal pression affect negatively growth while for other, governments must appropriate taxes to finance the susceptible structuring projects of growth. In this article, we intended to examine the relation between the fiscal pression and growth.
Of this fact, we have borrowed for 12 Sub-Saharan Africa’s countries the generalized moment method in panel data and panel threshold regression for one active period of 1985 to 2012. We succeeded to the results according to which, the fiscal pression is bound to the economic activity and this relation is not linear. A threshold exists between the fiscal pression and growth. Below this threshold, the fiscal pression encourages growth but to over of this threshold, it becomes harmful of economy.
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