Empirical analysis of value added tax and inflation rate: Tuckey's HSD test in selected Western Balkan countries

Abstract

In economic theory the price movement at a general level is one of the essential issues that can significantly affect on economic flows. The aim of this paper is to show that there is a significant difference in the average price level in the countries of the region, where the value added tax rates are analysed at the same time. The subject of the paper is manifested by the reflection of the inflation rate and value added tax rate in seven countries in the region from 2008 to 2016. Selected countries are Serbia,