Determinants of Low Tax Revenue: A panel Data Analysis

Authors

  • Wasi Ul Islam School of Economics, Quaid-I-Azam University, Islamabad, Pakistan Author
  • Hafiz Muhammad Abubakar Siddique Federal Urdu University of Arts, Science and Technology, Islamabad, Pakistan Author

Keywords:

Tax to GDP Ratio, Trade Openness, Capital inflow, Arellano-Bond Model

Abstract

This study is examined the determinants of tax to GDP ratio and to capture the reasons of consistently low tax to
GDP ratio for 27 low and high income countries over 2000-2014. To investigate the relationship, we have employed
random effect and Arellano bond model. The empirical results showed that tax to GDP ratio has strong link with
trade, capital inflow, tax base, corruption and per capita income. The findings exposed that trade openness, capital
inflow and per capita income have the positive and significant impact on tax to GDP ratio. The study also found that tax base is positively related to the tax to GDP ratio, as tax base widened, tax to GDP ratio increases.

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Published

2017-03-30

Issue

Vol. 6 No. 1 (2017)

Section

Articles

How to Cite

Wasi Ul Islam, & Siddique, H. M. A. . (2017). Determinants of Low Tax Revenue: A panel Data Analysis. Bulletin of Business and Economics (BBE), 6(1), 28-34. https://bbejournal.com/BBE/article/view/180