Investigating the Effectiveness of Determinant Factors of Tax Revenues in Iranian Provinces: A Spatial Panel Approach

Elham Nobahar (), Mohsen Pourebadollahan () and Nilofar Mashmool ()
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Elham Nobahar: Assistant Profosser of Economics, University of Tabriz
Mohsen Pourebadollahan: Associate Professor, University of Tabriz
Nilofar Mashmool: PhD student in Economics, University of Tabriz

Quarterly Journal of Applied Theories of Economics, 2022, vol. 9, issue 2, 191-222

Abstract: Tax is not only a means of financing government expenditures, but also plays a key role in justice promotion and equitable distribution of income in society. Therefore, planning for tax collection and replacing tax revenues with oil revenues is one of the most important pillars of economic and social development. In this regard, the main goal of this study is to investigate the effectiveness of determinant factors of tax revenue in Iranian provinces. For this purpose, using the data of 31 provinces during the period 2011-2019, the tax ratio model has been estimated by spatial panel approach. The results show that there are spatial effects in the tax ratio model. Moreover, the results of the SEM model show a positive and significant relationship between gini coefficient, urbanization rate, share of the industrial sector in GDP, per capita income and literacy rate with the tax ratio. On the other hand, inflation rate also has a significant negative effect on the tax ratio

Keywords: Tax revenue; Spatial panel; Spatial error model; Iranian provinces (search for similar items in EconPapers)
JEL-codes: C23 H20 R10 (search for similar items in EconPapers)
Date: 2022
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