IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v10y2021i1p51-65.html

Determinants Of Taxable Capacity In Saarc Countries

Author

Listed:
  • Muhammad Bilal Ijaz

    (Lecturer, Department of Management Sciences, University of Gujrat, Pakistan)

  • Rana Muhammad Shahid Yaqub

    (Assistant Professor, Institute of Business, Management and Administrative Sciences, The islamia University of Bahawalpur, Pakistan)

  • Awais Javeed

    (Lecturer, Department of Management Sciences, University of Gujrat, Pakistan)

Abstract

The main objective of this study is to estimate the determinants of taxable capacity of SAARC countries. For measuring the taxable capacity secondary data is gathered from the international country risk guide and World Bank development indicators. For data analysis, a Random effect model has been used. Important determinants to increase the taxable capacity of SAARC countries are found in this study. Economic factors such as GDP per capita, trade openness and agriculture value-added share have a highly significant impact on the taxable capacity of SAARC countries. The demographic factor-like population growth rate has a significant impact on the taxable capacity of SAARC countries Institutional factors such as control of corruption and bureaucracy quality index have a significant impact on the taxable capacity of SAARC countries. This study helps the SAARC country's policymakers; they can increase the tax revenues of SAARC countries by increasing the GDP, import and export (Trade Openness), bureaucracy quality and control of corruption.

Suggested Citation

  • Muhammad Bilal Ijaz & Rana Muhammad Shahid Yaqub & Awais Javeed, 2021. "Determinants Of Taxable Capacity In Saarc Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 51-65, March.
    • Handle: RePEc:rfh:bbejor:v:10:y:2021:i:1:p:51-65
    as

    Download full text from publisher

    File URL: https://bbejournal.com/index.php/BBE/article/view/71/23
    Download Restriction: no
    File URL: https://bbejournal.com/index.php/BBE/article/view/71
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fjeldstad, Odd-Helge & Tungodden, Bertil, 2003. ""Fiscal Corruption: A Vice or a Virtue"--A Reply," World Development, Elsevier, vol. 31(8), pages 1473-1475, August.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Aisha Ghaus Pasha, 2010. "Can Pakistan Get Out of the Low Tax-to-GDP Trap?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 171-185, September.
    4. Richard M. Bird & Jorge Martinez-Vazquez & Benno Torgler, 2014. "Societal Institutions and Tax Effort in Developing Countries," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 301-351, May.
    5. repec:wbk:wbpubs:2315 is not listed on IDEAS
    6. repec:wbk:wbpubs:4389 is not listed on IDEAS
    7. Mr. Dhaneshwar Ghura, 1998. "Tax Revenue in Sub-Saharan Africa: Effects of Economic Policies and Corruption," IMF Working Papers 1998/135, International Monetary Fund.
    8. Fjeldstad, Odd-Helge & Tungodden, Bertil, 2003. "Fiscal Corruption: A Vice or a Virtue?," World Development, Elsevier, vol. 31(8), pages 1459-1467, August.
    9. Mr. Vito Tanzi & Mr. Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 1997/139, International Monetary Fund.
    10. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    11. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mr. Paulo Drummond & Mr. Wendell Daal & Mr. Nandini Srivastava & Mr. Luiz E Oliveira, 2012. "Mobilizing Revenue in Sub-Saharan Africa: Empirical Norms and Key Determinants," IMF Working Papers 2012/108, International Monetary Fund.
    2. Sèna Kimm Gnangnon, 2022. "Financial development and tax revenue in developing countries: investigating the international trade channel," SN Business & Economics, Springer, vol. 2(1), pages 1-26, January.
    3. Simplice A Asongu, 2015. "A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control," Economics Bulletin, AccessEcon, vol. 35(4), pages 2037-2048.
    4. Gnangnon, Sèna Kimm, 2019. "Financial Development and Tax Revenue in Developing Countries: Investigating the International Trade and Economic Growth Channels," EconStor Preprints 206628, ZBW - Leibniz Information Centre for Economics.
    5. Safa Meddeb & Imed Harbaoui & Anis Bouabid, 2025. "A disaggregated analysis of the impact of corruption on tax revenue mobilization in developing countries : Evidence of a nonlinear relationship," Economics Bulletin, AccessEcon, vol. 45(2), pages 854-872.
    6. Le, Tuan Minh & Moreno-Dodson, Blanca & Bayraktar, Nihal, 2012. "Tax capacity and tax effort : extended cross-country analysis from 1994 to 2009," Policy Research Working Paper Series 6252, The World Bank.
    7. Tuan T. Chu & Jens Hölscher & Dermot McCarthy, 2020. "The impact of productive and non-productive government expenditure on economic growth: an empirical analysis in high-income versus low- to middle-income economies," Empirical Economics, Springer, vol. 58(5), pages 2403-2430, May.
    8. Gnangnon, Sèna Kimm, 2020. "Internet and tax reform in developing countries," Information Economics and Policy, Elsevier, vol. 51(C).
    9. Lien, Nguyen Phuong, 2015. "The impact of institutional quality on tax revenue in developing countries," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 5(10), pages 181-195, October.
    10. Abhijit Sen Gupta, 2007. "Determinants of Tax Revenue Efforts in Developing Countries," IMF Working Papers 2007/184, International Monetary Fund.
    11. Manamba Epaphra, & John Massawe,, 2017. "Corruption, governance and tax revenues in Africa," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(4), pages 439-467, October.
    12. Debonheur, Kadagde Dalam, 2025. "Natural resource rents and non-resource tax revenue mobilization in selected developing countries," Resources Policy, Elsevier, vol. 105(C).
    13. Nihal Bayraktar & Tuan Minh Le & Blanca Moreno-Dodson, 2012. "Tax Capacity and Tax Effort: Extended Cross-Country Analysis from 1994 to 2009," EcoMod2012 3858, EcoMod.
    14. Siongofolo Seydou Soro, 2020. "Institutional Quality and Tax Revenue in C te d Ivoire: Evidence from ARDL Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 40-49.
    15. Shrabani Saha & Kunal Sen, 2019. "The corruption-growth relationship: Do political institutions matter?," WIDER Working Paper Series wp-2019-65, World Institute for Development Economic Research (UNU-WIDER).
    16. Alessandro Federici & Pierluigi Montalbano, 2012. "Macroeconomic volatility, consumption behaviour and welfare: A cross-country analysis," Working Paper Series 3612, Department of Economics, University of Sussex Business School.
    17. Ferdi Celikay, 2020. "Dimensions of tax burden: a review on OECD countries," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 25(49), pages 27-43, March.
    18. Kim, Dong-Hyeon & Lin, Shu-Chin, 2023. "Income inequality, inflation and financial development," Journal of Empirical Finance, Elsevier, vol. 72(C), pages 468-487.
    19. Dalibor Eterovic & Nicolas Eterovic, 2010. "Political Competition vs. PoliticalParticipation: Effects on Government's Size," Working Papers wp_006, Adolfo Ibáñez University, School of Government.
    20. Helene Ehrhart, 2013. "Elections and the structure of taxation in developing countries," Public Choice, Springer, vol. 156(1), pages 195-211, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:10:y:2021:i:1:p:51-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani The email address of this maintainer does not seem to be valid anymore. Please ask Dr. Muhammad Irfan Chani to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.