The purpose of this study is to examine how do corporate and income taxes impact economic development in Egypt. This study uses the analytical quantitative method, and the approach of this study is based on using annual time series data for the period 1980 to 2018 to estimate two models by using Autoregressive distributed lag (ARDL) model. First estimation is between direct taxes (corporate and income taxes) and Growth domestic product (GDP) growth as dependent variable, and the second one by using human development index (HDI) instead of GDP growth. The second objective is to investigate the difference, if any, with the result obtained by using HDI and GDP in estimating the impact of the corporate and income taxes on the economic development of Egypt. Findings show a positively and significantly relationship between direct tax (Income and Corporate taxes) and economic growth in Egypt, and negative relationship between direct tax (Income and Corporate taxes) and economic development. The researcher, therefore, conclude that the implication of tax revenue is not making as much impact on economic development as on gross domestic product of Egypt. Thus, the Egyptian government should work more on encouraging its people to create trust in it through tax transparency, ensuring high fulfillment of the promises made to the public. This study provides a useful insight for the policy makers, stakeholders and government into the importance of tax revenue for economic development as a result; revenue derived from tax should be wisely used to encourage people to continue to pay tax.


School of Global Affairs and Public Policy


Public Policy & Administration Department

Degree Name

MA in Public Policy

Graduation Date

Spring 6-17-2021

Submission Date


First Advisor

Rana Hendy

Committee Member 1

Ahmed El Safty

Committee Member 2

Hamid Ali


65 p.

Document Type

Master's Thesis

Institutional Review Board (IRB) Approval

Not necessary for this item