Determinant of Tax Buoyancy: Empirical Evidence from Developing Countries

European Journal of Social Sciences, Vol. 13, No. 3, p. 408, 2010

7 Pages Posted: 13 Feb 2012  

Sulaiman D. Muhammad

Federal Urdu University of Arts Science & Technology

Qazi Masood Ahmed

University of Karachi

Multiple version iconThere are 2 versions of this paper

Date Written: February 12, 2010

Abstract

The purpose of this paper is to find the determinant of tax buoyancy of developing countries. We have used 25 countries cross section data for the year 1998 to 2008 and used pooled least square method for result analysis. The result shows that import, manufacturing sector, services sector, monetization and budget deficit influence positively the tax buoyancy while growth in grants impact negatively on tax buoyancy. The growth of agriculture sector has insignificant impact on tax buoyancy in case of developing countries because they are not taxed or under taxed.

Keywords: Developing countries, Tax buoyancy

JEL Classification: O57, H29

Suggested Citation

Muhammad, Sulaiman D. and Ahmed, Qazi Masood, Determinant of Tax Buoyancy: Empirical Evidence from Developing Countries (February 12, 2010). European Journal of Social Sciences, Vol. 13, No. 3, p. 408, 2010. Available at SSRN: https://ssrn.com/abstract=2003778

Sulaiman D. Muhammad (Contact Author)

Federal Urdu University of Arts Science & Technology ( email )

Sector G-7/1, Main University Road
Gulshan-e-Iqbal
Karachi, Sindh 744000
Pakistan

Qazi Masood Ahmed

University of Karachi ( email )

University Road
Karachi, Sindh 75270
Pakistan

Paper statistics

Downloads
200
Rank
59,481
Abstract Views
920