scholarly journals Worldwide Tax Revenue Collection: Lessons from Pre-Pandemic Era

2020 ◽  
Vol 4 (3) ◽  
pp. 183-194
Author(s):  
Ahmad Zaky Zamani
Keyword(s):  
Panel Data ◽  
Trade Openness ◽  
Fixed Effect ◽  
Institutional Factors ◽  
Tax Revenue ◽  
Key Factors ◽  
Tax Collection ◽  
System Gmm ◽  
Revenue Collection ◽  
The World

Despite the fact that majority of countries in the world rely heavily on tax revenue, there is a vast difference in terms of tax collection performance. This study reassessed several structural, economic, demographic and institutional factors that potentially explain the variation. We employ pooled OLS, fixed effect and system GMM estimations to analyze a panel data of 161 countries for 15 years spanning from 2002 to 2017. Our findings confirmed that level of development and investment are among key factors that leads to revenue improvement. It is very likely that such a relationship has two-way directions. Other factors such as trade openness, inflation, share of agriculture and national resources in the economy, population, and governance, cannot be downplayed despite its mixed inferences.

Tax Revenues and Tax Efforts across the World

2016 ◽  
pp. 48-99
Author(s):  
Nihal Bayraktar ◽  
Tuan Minh Le ◽  
Blanca Moreno-Dodson
Keyword(s):  
Developed Countries ◽  
Institutional Constraints ◽  
Tax Revenue ◽  
Empirical Estimation ◽  
Tax Reforms ◽  
Tax Effort ◽  
Revenue Collection ◽  
The World ◽  
Country Study ◽  
Cross Country

This chapter focuses on the concept and empirical estimation of tax effort around the world. It employs a cross-country study from a sample of 121, developing and developed countries during 1994-2012. Predicted tax revenue of a country is estimated empirically taking into account its specific economic, demographic, and institutional features and is considered as an approximation of its taxable capacity. Tax effort is then defined as the ratio between the share of the actual tax collection and the predicted tax revenue. The use of tax effort and actual tax revenue collection allows us to rank countries into four different groups. The results vary per country and region but, overall, tax revenue collection appears to be in line with its predicted value. This could reflect many efforts undertaken in the last decades to improve tax policy and tax administration. It also suggests that further improvements in domestic revenue mobilization may require other non-tax reforms aimed at removing economic, demographic and institutional constraints hindering tax revenue performance.

scholarly journals Different convergence rates of new EU member states: Panel data analysis of the causes

2020 ◽  
Vol 11 (2) ◽  
pp. 291-300
Author(s):  
Josip Viskovic ◽  
Pasko Burnac ◽  
Ivan Ramljak
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Convergence Rates ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Real Income ◽  
Key Factors ◽  
Eu Member States ◽  
Determining Factors ◽  
Institutional Convergence

This paper, using panel data analysis, tries to identify factors regarding the different convergence rates of CESEE EU member countries’ real income between 2002 and 2018. Stylized convergence facts are identified and the drivers of economic growth based on production function, i.e. the accumulation of labour and capital and total factor productivity (TFP) growth have been analysed. Moreover, paper takes into account other variables that have been recognized as growth determining factors - trade openness, FDI, labour market and integration level, as well as TFP determining factors - institutional quality, innovation and human capital. Based on the research results trade openness and gross capital formation have been identified as key factors regarding real income growth of analysed countries. Also, it has been confirmed that growth of CESEE countries is strongly affected by the growth of Eurozone. Finally, the authors’ conclusion is that several CESEE countries are facing institutional convergence challenges.

scholarly journals Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries

Foods ◽  
2021 ◽  
Vol 10 (12) ◽  
pp. 3012
Author(s):  
Zhilu Sun ◽  
Defeng Zhang
Keyword(s):  
Food Security ◽  
Panel Data ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Asian Countries ◽  
Central Asian ◽  
The World ◽  
Central Asian Countries ◽  
The Impact

The problem of food insecurity has become increasingly critical across the world since 2015, which threatens the lives and livelihoods of people around the world and has historically been a challenge confined primarily to developing countries, to which the countries of Central Asia, as typical transition countries, cannot be immune either. Under this context, many countries including Central Asian countries have recognized the importance of trade openness to ensure adequate levels of food security and are increasingly reliant on international trade for food security. Using the 2001–2018 panel data of Central Asian countries, based on food security’s four pillars (including availability, access, stability, and utilization), this study empirically estimates the impact of trade openness and other factors on food security and traces a U-shaped (or inverted U-shaped) relationship between trade openness and food security by adopting a panel data fixed effect model as the baseline model, and then conducts the robustness test by using the least-squares (LS) procedure for the pooled data and a dynamic panel data (DPD) analysis with the generalized method of moments (GMM) approach, simultaneously. The results show that: (1) a U-shaped relationship between trade openness and the four pillars of food security was found, which means that beyond a certain threshold of trade openness, food security status tends to improve in Central Asian countries; (2) gross domestic product (GDP) per capita, GDP growth, and agricultural productivity have contributed to the improvement of food security. Employment in agriculture, arable land, freshwater withdrawals in agriculture, population growth, natural disasters, and inflation rate have negative impacts on food security; and (3) this study confirms that trade policy reforms can finally be conducive to improving food security in Central Asian countries. However, considering the effects of other factors, potential negative effects of trade openness, and vulnerability of global food trade network, ensuring reasonable levels of food self-sufficiency is still very important for Central Asian countries to achieve food security. Our research findings can provide scientific support for sustainable food system strategies in Central Asian countries.

scholarly journals A Cryptography-Based System for Offline Collection and Verification of Tax Revenue by County Governments in Kenya

2017 ◽  
Vol 13 (34) ◽  
pp. 414
Author(s):  
Nebert Mandala ◽  
Carlton Wanga ◽  
Josiah Aduda
Keyword(s):  
Network Connectivity ◽  
Tax Revenue ◽  
Collection System ◽  
Tax Collection ◽  
County Governments ◽  
Point Of Sale ◽  
Revenue Collection ◽  
Current Setting ◽  
Accounting Reports

In the current setting of county governments in Kenya, efficient tax collection is highly dependent on validation of payment documents. This has led to challenges due to the fact that revenue collection has traditionally employed paper-based collection receipts. The research targets to address the challenges of validation of payment receipts in offline revenue collection systems. It supports automation attempts that have been made through the introduction of electronic mobile point of sale terminals. The solution is based on providing an offline model that supports the distributed nature of payment stations. This approach focuses on using cryptography-based techniques to enable offline validation of receipts even in cases of unreliable network connectivity. The objective is to provide a solution that affords ease of both revenue collections for the county governments and payments for the citizenry while stopping revenue leakages, ensuring reliable verification of payment receipts, thus maximising of revenue collection by providing reliable accounting reports. The research provides a reliable revenue collection system that enables offline receipting and verification of payment receipts in integrated mobile point of sale terminals. The solution presented has successfully been implemented and tested in one of the County Governments in Kenya.

scholarly journals The Dynamic Effects of Growth, Financial Development and Trade Openness on Tax Revenue in Malaysia

2020 ◽  
Vol 21 (1) ◽  
pp. 42-62
Author(s):  
Nanthakumar Loganathan ◽  
Norsiah Ahmad ◽  
Thirunaukarasu Subramaniam
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Trade Openness ◽  
Tax Revenue ◽  
Tax Collection ◽  
Empirical Results ◽  
Long Run ◽  
Rolling Window ◽  
Short Run ◽  
Sustainable Economic Growth

This study explores the effects of domestic financial development, growth and trade openness on tax collection for Malaysia using the ARDL and bootstrap rolling window estimates covering the period 1970-2017. The empirical results suggest that, the presence oflong-run relationship between tax revenue and per capita GDP and short-run relationship between tax collection, economic growth, financial development and trade openness. We foundthatthere is a short-run unidirectional causality running between tax collection, economic growth and financial development. This result suggests that, in the long-run, economic performance and financial development have an adverse effect on tax collection, while trade openness has no significant causality impact on tax collection in Malaysia. Based on the empirical results of the study, the country should pay more attention to enhance the effectiveness of future public expenditure programs and put more emphasisson dynamic fiscal policy targeting on tax reform and securing new sourcesof tax revenues to ensure continuous flow of long-term tax revenue coupled with sustainable economic growth, trade and financial performances in up-coming years.

Tax Performance and Taxable Capacity: Analysis for Selected States of India

2003 ◽  
Vol 21 (1) ◽  
pp. 25-46 ◽  
Author(s):  
Dipankor Coondoo ◽  
Amita Majumder ◽  
Robin Mukherjee ◽  
Chiranjib Neogi
Keyword(s):  
Panel Data ◽  
State Level ◽  
Tax Revenue ◽  
Capacity Measurement ◽  
Indian States ◽  
Transfer Policy ◽  
Revenue Collection ◽  
Equity And Efficiency ◽  
Definition Of ◽  
Capacity Formulation

Abstract In a federal form of government structure, the state-level governments generally receive supplementary budgetary resources from the central/federal government as support for the formers’ public expenditure activities. Such devolution of funds from the centre to the states takes the form of share of the revenue raised by central taxes and grants-in-aid. It is felt that such resource transfers should be made according to a policy based on the criteria of equity and efficiency. Formally, these criteria are defined with reference to individual state’s tax revenue collection relative to its taxable capacity. Formulation of a concrete transfer policy, however, crucially requires measures of individual state’s taxable capacity. Given an appropriate definition of a state’s taxable capacity, measurement of taxable capacity of states involves both conceptual and econometric issues. This paper proposes an econometric approach to the measurement of taxable capacity, which is similar to estimating a frontier production function using panel data. To illustrate the proposed method, it is applied to the panel data on annual state tax revenue and related variables of some selected Indian states for the period 1986-87 to 1996-97 and the relative taxable capacity and tax efforts of the states are compared.

scholarly journals Analysis of Revenue Potential and Revenue Effort in Developing Asian Countries

2012 ◽  
Vol 51 (4II) ◽  
pp. 365-380
Author(s):  
Attiya Y. Javid ◽  
Umaima Arif
Keyword(s):  
Developing Countries ◽  
Tax Evasion ◽  
Large Body ◽  
Tax Revenue ◽  
Reform Process ◽  
Public Expenditures ◽  
Budget Deficits ◽  
Tax Collection ◽  
Revenue Collection ◽  
Basic Infrastructure

Countries around the world are increasingly recognising that the effective revenue system is the most important factor for economic development. Factors effecting revenue potential measured as the revenue to GDP has been one of the most important issues that concerns to policy-makers from last three decades. Many developing countries face difficulties in generating sufficient revenues for public expenditure. In some countries budget deficits and the unproductive use of public expenditures have narrow the vital investments in both human resources and basic infrastructure that are necessary for providing base for sustainable economic growth and development. Too much dependence on foreign financing may cause problems of debt sustainability; therefore developing countries will need to depend substantially on domestic revenue generation. There is a large body of literature on tax revenue potential in developing countries [Bahl (1971); Tanzi (1987); Leuthold (1991); and Stotsky and Mariam (1997); Gupta (2007)]. However, there is few studies that examine institutional and governance quality as a factor influencing tax collection and tax revenue potential. According to Tanzi and Davoodi (1997) and Gupta (2007) these factors are responsible for low tax collection in developing countries by allowing citizens inappropriate tax exemptions and enabling tax evasion due to bad tax administration. Therefore, a precondition for ensuring adequate revenue collection is a legitimate and responsive institutions following the rule of law with control on corruption and having high quality bureaucracy to administer. Studies also confirm that a strong political will to reform is required for successful reform process [Bird (2004)]. Alm, et al. (2003) suggest that tax records of countries are reflection of their political or societal institutions.

The Effect of Foreign Direct Investment on the Economic Development of Mongolia

2018 ◽  
Vol 16 (3) ◽  
pp. 12-21 ◽  
Author(s):  
Erdenebat Mungunzul ◽  
Taikoo Chang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Fixed Effects Models ◽  
Study Results ◽  
The World

This article describes how foreign direct investment in Mongolia has reached 3.9 billion US$ mainly in the mining sector that amounted approximately 40% of the year's GDP. Even though FDI into Mongolia has been grown along with the country's economic development with trade openness to the world, a few studies have used regression analysis to analyze determinant factors of FDI. This article has estimated the determinants attracting FDI inflow into Mongolia by using two methods: applying single country (Mongolia) data using the determinants attracting FDI inflow into Mongolia from 1995-2014, and applying the determinants attracting FDI from the top investment countries using panel data, using random and fixed effects models from 2005-2013. The study results showed that GDP of Mongolia has a positive and significant effect on the FDI inflow. It was also revealed that the partner countries located either too far away from or too close to Mongolia pay little attention to and play a small investment role in Mongolian FDI.

The Effect of Foreign Direct Investment on the Economic Development of Mongolia

2020 ◽  
pp. 1064-1075
Author(s):  
Erdenebat Mungunzul ◽  
Taikoo Chang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Fixed Effects Models ◽  
Study Results ◽  
The World

This article describes how foreign direct investment in Mongolia has reached 3.9 billion US$ mainly in the mining sector that amounted approximately 40% of the year's GDP. Even though FDI into Mongolia has been grown along with the country's economic development with trade openness to the world, a few studies have used regression analysis to analyze determinant factors of FDI. This article has estimated the determinants attracting FDI inflow into Mongolia by using two methods: applying single country (Mongolia) data using the determinants attracting FDI inflow into Mongolia from 1995-2014, and applying the determinants attracting FDI from the top investment countries using panel data, using random and fixed effects models from 2005-2013. The study results showed that GDP of Mongolia has a positive and significant effect on the FDI inflow. It was also revealed that the partner countries located either too far away from or too close to Mongolia pay little attention to and play a small investment role in Mongolian FDI.

scholarly journals ANALISIS PENGARUH KETERBUKAAN EKONOMI TERHADAP PERTUMBUHAN EKONOMI (STUDI KASUS: ASEAN TAHUN 2007 – 2017)

2020 ◽  
Vol 2 (2) ◽  
pp. 20
Author(s):  
Rahmi Nuraini Purnomo
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Panel Data ◽  
Hypothesis Testing ◽  
Trade Openness ◽  
Financial Sector ◽  
Economic Openness ◽  
Panel Data Regression ◽  
Data Regression ◽  
The World

The era of globalization demands an increasingly broad economic openness from every country in the world, both openness in foreign trade (trade openness) and openness to the financial sector. In theory, economic openness benefits all countries involved. The advantages of trade openness include opening up wider market access to achieving higher levels of efficiency and economic competitiveness, as well as opportunities for greater employment. Openness in the financial sector can encourage the entry of foreign capital (capital inflow), and accelerate the occurrence of capital accumulation and technology transfer. This study aims to analyze the effect of economic openness on economic growth in ASEAN (Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, Brunei Darussalam, Cambodia) for the period 2000 - 2017. This study uses panel data regression analysis with a fixed effect approach.               The method in this study uses quantitative research by conducting hypothesis testing. The data used are secondary data from ASEAN countries in 2007-2017 by looking at publications at the World Bank. This study uses panel data, where the panel data is a combination of cross section and time series data. The analytical tool used is panel data regression analysis using the Eviews9 program. Then the best panel data regression model is estimated.               From the stages of analysis carried out, the results of data analysis showed that the results of the panel data estimation selected the best model were Fixed Effext Model (FEM). Hypothesis testing of the results of the Trade Openness (TO) and Foreign Direct Investment (FDI) model have a positive and significant effect on ASEAN Economic Growth (G), while the government expenditure variable (GOV) has no significant positive effect. The inflation variable (INF) has no effect on economic growth.

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