Can financial affect tax revenue genration?
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Financial development can have a positive effect on tax revenue generation. Several studies have shown that financial development improves efforts to increase the tax base and tax revenue through different channels . In Nigeria, financial system activities such as stock market development, banking development, banking crisis, and financial inclusion variables play a pivotal role in tax revenue collection . Similarly, in Bahrain and Oman, economic and financial factors including GDP growth, bank capital to asset ratio, risk premium on lending, foreign direct investment net inflow, and cash surplus/deficit have a significant relationship with tax revenue . The development of financial markets is crucial for the economic growth of developing countries like Pakistan, and financial sector development has an impact on tax revenue collection . Furthermore, financial development has a positive effect on non-resource tax revenue performance in developing countries, particularly through higher trade openness, export product diversification, share of manufactured exports, and economic growth rate .
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| Papers (5) | Insight |
|---|---|
Open access•Posted Content | Yes, financial development has a positive effect on non-resource tax revenue generation in developing countries, as shown in the empirical analysis of the paper. |
| Yes, financial sector activities can affect tax revenue generation. The paper discusses the impact of different financial market activities on tax revenue in Pakistan and finds that variables such as the number of bank branches and market capitalization have a positive and significant impact on tax revenue. | |
01 Mar 2019 | Yes, financial factors such as bank capital to asset ratio, risk premium on lending, and cash surplus/deficit have a significant impact on tax revenue generation. |
01 Jan 2017 | Yes, the paper states that financial system activities, such as stock market development, banking development, banking crisis, and financial inclusion, influence tax revenue collection in Nigeria. |
| Yes, financial development can affect tax revenue generation. The paper analyzes the effect of financial development on tax revenue and finds that financial development improves the tax base and tax revenue when the quality of institutions is better. |
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