IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v37y2025i5p499-515.html
   My bibliography  Save this article

Economic drivers of tax revenue: insights from European economies

Author

Listed:
  • Milica Ristić Cakić
  • Branimir Kalaš
  • Jadranka Đurović Todorović
  • Marina Đorđević

Abstract

Tax revenues are one of the most essential drivers of economic growth and development. Determining the main factors that contribute to higher or lower tax revenues is a relevant issue in public finance. The objective of the research is to find how macroeconomic determinants influence the tax revenues and provide fresh theoretical and empirical approach of tax revenues mobilisation. The study examines the influence of macroeconomic determinants on tax revenues in European countries for the period 2006–2023. Applying different panel models, the empirical findings revealed that GDPpc, industry value added and trade openness positively influence the tax revenues, while inflation, unemployment and government debt have negative effects. The study suggests that policymakers in these countries must focus on creating a favourable economic environment that will be reflected in greater rates of economic growth and development, stable price level, an acceptable unemployment rate, a higher share of industry value added and trade openness in GDP, as well as sustainable government debt level.

Suggested Citation

  • Milica Ristić Cakić & Branimir Kalaš & Jadranka Đurović Todorović & Marina Đorđević, 2025. "Economic drivers of tax revenue: insights from European economies," Post-Communist Economies, Taylor & Francis Journals, vol. 37(5), pages 499-515, July.
    • Handle: RePEc:taf:pocoec:v:37:y:2025:i:5:p:499-515
    DOI: 10.1080/14631377.2025.2461929
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2025.2461929
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2025.2461929?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:pocoec:v:37:y:2025:i:5:p:499-515. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    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.