The Impact of Institutional Quality on Tax Revenue in Developing Countries

Lien Nguyen Phuong

Asian Journal of Empirical Research, 2015, vol. 5, issue 10, 181-195

Abstract: This article applies the method of difference panel GMM Arellano-Bond for a dataset of eighty two developing countries (These countries are classified into three economies basing on estimates of gross national income (GNI) per capita for the 2014 year by using the World Bank Atlas method ) during a period from 1996 to 2013 to empirically assess the impact of institutional quality (based on six World Bank governance indicators ) on government tax revenue. The results show a significantly positive impact of institutional quality on tax revenue in the whole sample, as well as in the low-income and lower-middle income groups while this impact is significantly negative in upper-middle income group. These results are definitely consistent and robust for all six World Bank governance indicators. The findings suggest governments in developing countries should appropriately adjust institutional quality to improve the tax revenue and promote economic activities.

Keywords: Institution; tax revenue; difference GMM; developing countries (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://archive.aessweb.com/index.php/5004/article/view/3862/6075 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:ajoerj:v:5:y:2015:i:10:p:181-195:id:3862

Access Statistics for this article

More articles in Asian Journal of Empirical Research from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().