Document Type : Research Paper

Authors

• Ali Nassiri Aghdam
• mahtab moradzadeh

Allameh Tabataba'i University

Abstract

Why do countries around the world exhibit such varying performance in tax revenue collection? Among the factors identified in various studies as influencing tax revenues, which ones best explain the differences in tax collection efficiency across countries? To gain a deeper understanding of these factors, this study employs a multi-level meta-analysis approach. A total of 48 articles, comprising 799 effect sizes, were selected for analysis. The results of the meta-analysis indicate that, after controlling for publication bias and moderator variables, gross domestic product (GDP), international trade, inflation, industrial sector value-added, and tax revenue lag have significant and positive effects on tax revenues. Conversely, agricultural sector value-added and corruption exhibit significant negative effects on tax revenues. Additionally, foreign direct investment (FDI) does not have a significant impact on tax revenues. Moreover, the study shows that the relationship between these variables and tax revenues differs depending on whether tax revenues are measured including or excluding social security contributions. Finally, control variables such as population, corruption, international trade, institutions, GDP, inflation, sample size, model and methodology (including time series, panel data, static and dynamic models, fixed and random effects, generalized method of moments, and other dynamic methods), as well as study periods, also significantly explain the variations observed across.

Keywords

• Tax revenues
• economic production structure
• economic openness
• inflation
• meta-analysis

Main Subjects

• Tax