AN ECONOMETRIC ANALYSIS OF SOCIAL SECURITY AND SOCIO-ECONOMIC DEVELOPMENT

Abstract

Social security benefits are required payments made to the government in exchange for the right to claim further societal benefits in the future. Additional factors that affect social security contributions exist. Social security contributions may have a positive or negative association. Therefore, the study uses secondary data gathered from The World Development Indicators database (WDI) between 1990 and 2020 to analyse the impact of tax income, expense, and life expectancy on social security contributions. The ARDL model was used to conduct a quantitative evaluation of information and statistical analysis of it. According to an empirical finding, social security contributions have a negative relationship with tax receipts whereas expenses have a positive relationship with life expectancy. A precise definition should be utilized when referring to the distinction between social security contributions and tax revenue. In various circumstances, a nation must deal with the problem of a double economic contribution.