Fiscal Policy and Economic Growth: A Comparative Analysis of Zambia, China, South Africa, and the United States

Abstract

This study examines the relationship between key fiscal policy instruments-taxes on international trade, tax revenue as a percentage of GDP, and applied tariff rates-and economic growth in four countries with different economic systems: Zambia, China, South Africa, and the United States. Using secondary data from the World Bank and employing statistical techniques through Jamovi software, the analysis includes descriptive statistics, correlation matrices, ANOVA, and regression models. The results show that the impact of fiscal policy varies significantly across countries, influenced by structural and institutional differences. In particular, trade taxes are positively associated with economic growth in Zambia and South Africa, while domestic tax revenues are more strongly associated with growth in China and the United States. Tariff rates show a context-dependent influence, with a moderately positive impact in developing countries. The study contributes to the literature on fiscal policy by providing a comparative empirical approach and by highlighting the importance of context-specific strategies. It underscores the need for revenue diversification, efficient tax administration, and strategic trade taxation in developing countries, while emphasizing the maintenance of stable and progressive tax systems in advanced economies to promote fiscal sustainability and inclusive growth.