Factors Affecting Tax Revenue in Developing and Developed Countries with Emphasis on Growth of the Agricultural Sector

Subject Areas : Agricultural Economics Research

abbas mirzaei ¹ , hassan azarm ² , Dorna jahangirpor ³

1 - Department of Agricultural Economics, Faculty of Agriculture Engineering and Rural Development, Agricultural Sciences and Natural Resources University of Khuzestan, Mollasani, Iran
2 - Department of Agricultural Economics, School of Agriculture, Shiraz University, Shiraz, Iran
3 - Department of Agricultural Economics, School of Agriculture, Shiraz University, Shiraz, Iran

Received: 2019-08-03 Accepted : 2022-01-14 Published : 2022-07-23

Keywords: panel data, Developing Countries, Tax revenue, Growth of Agriculture Sector, Developed countries,

Abstract :

Introduction: Tax as one of the most important sources of revenue, plays a special role in government financial status. Previous studies have examined tax revenue only for developing countries, and no comparison has been made between the factors affecting the tax revenue of developed and developing countries. Materials and Methods: This study utilizes panel data from 30 developing countries during the period 2002-2015 and 8 developed countries during the period 1997-2015 and the control of endogenous some explanatory variables, the method of instrumental variables panel data with considering the constant effects of the individual to estimate the effect of various factors on tax revenue. Findings: The results of the study showed that the growth of the agricultural sector in developing countries would reduce the share of tax revenue in these countries. Also, the results showed that the reduction of tariffs and trade barriers with the transparency and reduction of economic instability can play an important role in increasing the tax share of GDP in developing countries. Conclusion: Agricultural growth can be enhanced through policies such as reducing or eliminating tax subsidies and discounts, eliminating brokering and creating a transparent market for agricultural products, and increase the financial strength of the producers of this sector by adopting non-subsidized policies towards market and commercialization.

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