THE INFLUENCE OF THE TRANSACTION TAX ON THE SELECTED ECONOMIC INDICATORS

The paper focuses on the effect of transaction taxes in the French financial market and the selected economic indicators. We would like to point out the importance of transaction taxes on the economy in the EU and to analyse the influence of this tax on the single European capital market We assume that financial transaction tax (FTT) has a positive effect on economic growth and that the correlation between FTT and the hedging assets is statistically significant. We used a regression model where we analyse FTT, economic growth, market volume, price of index CAC40, total financial assets, financial derivatives, and debt instruments. Our results have shown the negative impact on market volume as well as on economic growth shortly after the adopting FTT in France.