Bulletin of Business and Economics (BBE)

ISSN - 2414-1771 (Print)

ISSN - 2409-9368 (Online)

Determinants of Low Tax Revenue: A panel Data Analysis


Wasi Ul Islam, Hafiz Muhammad Abubakar Siddique


Ul-Isalm, W. and Siddique, H. M. A. (2017). Determinants of Low Tax Revenue: A panel Data Analysis. Bulletin of Business and Economics, 6(1), 28-34.


This study is examined the determinants of tax to GDP ratio and to capture the reasons of consistently low tax to GDP ratio for 27 low and high income countries over 2000-2014. To investigate the relationship, we have employed random effect and Arellano bond model. The empirical results showed that tax to GDP ratio has strong link with trade, capital inflow, tax base, corruption and per capita income. The findings exposed that trade openness, capital inflow and per capita income have the positive and significant impact on tax to GDP ratio. The study also found that tax base is positively related to the tax to GDP ratio, as tax base widened, tax to GDP ratio increases.


Tax to GDP Ratio, Trade Openness, Capital inflow, Arellano-Bond Model

Jel Code:

H2, B27

Article Type:

Research Article




Research Foundation for Humanity (RFH)

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