Political Regime Type and Taxation

Maria Melody Garcia

University of Rome II - Faculty of Economics

Christian Von Haldenwang

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

December 20, 2013

Is democracy associated with increased domestic revenue mobilisation? A growing body of literature suggests that political regime type matters in determining taxation. However, research on the relationship of political regimes to taxation yields mixed results. To what extent does the democratic or authoritarian character of the polity impact on the level of taxation? The paper investigates the relationship between political regimes and tax ratio, using a panel dataset of 160 countries and covering the period 1990-2008. Findings suggest that the character of the polity clearly affects taxation, but there is no linear trend in favour of democracy, such as many studies postulate. Rather, the results indicate a U-shaped relationship between polity and tax ratio.

Number of Pages in PDF File: 26

Keywords: Political regime, Democracy, Autocracy, Taxation, Tax ratio

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Date posted: November 10, 2011 ; Last revised: January 3, 2014

Suggested Citation

Garcia, Maria Melody and von Haldenwang, Christian, Political Regime Type and Taxation (December 20, 2013). Available at SSRN: http://ssrn.com/abstract=1957617 or http://dx.doi.org/10.2139/ssrn.1957617

Contact Information

Maria Melody Garcia
University of Rome II - Faculty of Economics ( email )
Via Columbia 2
Rome, 00133
Christian Von Haldenwang (Contact Author)
German Development Institute ( email )
Tulpenfeld 6
Bonn, 53113
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