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Determinants of tax revenue in OECD countries over the period 2001-2011

Author

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  • Ángeles Castro Gerardo

    (Instituto Politécnico Nacional)

  • Ramírez Camarillo Diana Berenice

    (Instituto Politécnico Nacional)

Abstract

By using static and dynamic panel data techniques, this paper analyses the impact of economic, structural, institutional and social factors on tax revenue, across 34 countries from the Organisation for Economic Co-operation and Development, over the period 2001-2011. The results show that gross domestic product per capita, the industrial sector, and civil liberties have positive impact on the dependent variable, while the agricultural sector and the share of foreign direct investment in gross fixed capital formation have negative impact. The lagged value of the dependent variable enters positively in the equation and its effect is larger in high income countries. We also encounter tax effort and tax gap and find that they are stable over time but diverse across countries regardless the level of development of the economies.

Suggested Citation

  • Ángeles Castro Gerardo & Ramírez Camarillo Diana Berenice, 2014. "Determinants of tax revenue in OECD countries over the period 2001-2011," Contaduría y Administración, Accounting and Management, vol. 59(3), pages 35-60, julio-sep.
    • Handle: RePEc:nax:conyad:v:59:y:2014:i:3:p:35-60
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    Cited by:

    1. Kerstin Hotte & Angelos Theodorakopoulos & Pantelis Koutroumpis, 2021. "Automation and Taxation," Papers 2103.04111, arXiv.org, revised Apr 2022.

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    More about this item

    Keywords

    Datos de panel; ingreso fiscal; brecha fiscal; OCDE;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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