Corruption and tax evasion remain main problems in both developed and developing countries. So, contribution of this study was to extend the conventional determinants of tax revenue over gross domestic product not only supply factor but also demand factor such as corruption, political stability, and rule of low which determine the tax revenue over gross domestic product to a significant extent. Panel regression model was used for analysis. Panel data were collected from 33 developing and developed countries for the period of 2002-2017. The data sets which were used in model analysis were obtained from the database of the world development indicators. As the fixed effect regression result indicates corruption has significant adverse effect on government tax revenue over gross domestic product in both developed and developing countries. The least corrupted countries collect 6% more tax revenue than high corrupted countries. The great progress in corruption has to be monitored and reduced. So, corruption no longer considered as an exogenous factor in an economy, it should be considered as a controlled and minimized phenomenon by the democratic institution and civil society. Therefore legislative reforms have to be continued in order to diminish corruption.
| Published in | European Business & Management (Volume 6, Issue 2) |
| DOI | 10.11648/j.ebm.20200602.12 |
| Page(s) | 28-35 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2020. Published by Science Publishing Group |
Developed and Developing Countries, Effect of Corruption, Panel Data, Tax Revenue over GDP
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APA Style
Gedefaw Abebe, Seyfe Fikre. (2020). Econometric Analysis of the Effects of Corruption on Government Tax Revenue: Evidence from Panel Data in Developed and Developing Countries. European Business & Management, 6(2), 28-35. https://doi.org/10.11648/j.ebm.20200602.12
ACS Style
Gedefaw Abebe; Seyfe Fikre. Econometric Analysis of the Effects of Corruption on Government Tax Revenue: Evidence from Panel Data in Developed and Developing Countries. Eur. Bus. Manag. 2020, 6(2), 28-35. doi: 10.11648/j.ebm.20200602.12
AMA Style
Gedefaw Abebe, Seyfe Fikre. Econometric Analysis of the Effects of Corruption on Government Tax Revenue: Evidence from Panel Data in Developed and Developing Countries. Eur Bus Manag. 2020;6(2):28-35. doi: 10.11648/j.ebm.20200602.12
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Download@article{10.11648/j.ebm.20200602.12,
author = {Gedefaw Abebe and Seyfe Fikre},
title = {Econometric Analysis of the Effects of Corruption on Government Tax Revenue: Evidence from Panel Data in Developed and Developing Countries},
journal = {European Business & Management},
volume = {6},
number = {2},
pages = {28-35},
doi = {10.11648/j.ebm.20200602.12},
url = {https://doi.org/10.11648/j.ebm.20200602.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20200602.12},
abstract = {Corruption and tax evasion remain main problems in both developed and developing countries. So, contribution of this study was to extend the conventional determinants of tax revenue over gross domestic product not only supply factor but also demand factor such as corruption, political stability, and rule of low which determine the tax revenue over gross domestic product to a significant extent. Panel regression model was used for analysis. Panel data were collected from 33 developing and developed countries for the period of 2002-2017. The data sets which were used in model analysis were obtained from the database of the world development indicators. As the fixed effect regression result indicates corruption has significant adverse effect on government tax revenue over gross domestic product in both developed and developing countries. The least corrupted countries collect 6% more tax revenue than high corrupted countries. The great progress in corruption has to be monitored and reduced. So, corruption no longer considered as an exogenous factor in an economy, it should be considered as a controlled and minimized phenomenon by the democratic institution and civil society. Therefore legislative reforms have to be continued in order to diminish corruption.},
year = {2020}
}
TY - JOUR T1 - Econometric Analysis of the Effects of Corruption on Government Tax Revenue: Evidence from Panel Data in Developed and Developing Countries AU - Gedefaw Abebe AU - Seyfe Fikre Y1 - 2020/06/20 PY - 2020 N1 - https://doi.org/10.11648/j.ebm.20200602.12 DO - 10.11648/j.ebm.20200602.12 T2 - European Business & Management JF - European Business & Management JO - European Business & Management SP - 28 EP - 35 PB - Science Publishing Group SN - 2575-5811 UR - https://doi.org/10.11648/j.ebm.20200602.12 AB - Corruption and tax evasion remain main problems in both developed and developing countries. So, contribution of this study was to extend the conventional determinants of tax revenue over gross domestic product not only supply factor but also demand factor such as corruption, political stability, and rule of low which determine the tax revenue over gross domestic product to a significant extent. Panel regression model was used for analysis. Panel data were collected from 33 developing and developed countries for the period of 2002-2017. The data sets which were used in model analysis were obtained from the database of the world development indicators. As the fixed effect regression result indicates corruption has significant adverse effect on government tax revenue over gross domestic product in both developed and developing countries. The least corrupted countries collect 6% more tax revenue than high corrupted countries. The great progress in corruption has to be monitored and reduced. So, corruption no longer considered as an exogenous factor in an economy, it should be considered as a controlled and minimized phenomenon by the democratic institution and civil society. Therefore legislative reforms have to be continued in order to diminish corruption. VL - 6 IS - 2 ER -
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