FACTORS AFFECTING TAX REVENUES: PANEL DATA ANALYSIS FOR SELECTED COUNTRIES

In this study, the determinants of tax revenues in G7 (France, Germany, Italy, UK, Canada, Japan, USA) and BRIC-T (Brazil, Russia, India, China, Turkey) countries were investigated by using panel data analysis method for the period of 1995-2017. In the analysis tested the developed hypothesis of whether potential taxdeterminant influence tax performance in developed and developing countries and the series were determined to be stationary in the first difference. As a result of the analyzes, it was found that the fixed effects model was suitable for the data set. Tested whether the model provides assumptions and the models developed against deviations from assumptions have been estimated Driscoll-Kraay robust standard estimator. As a result of the study, it was concluded that the national income per capita, employment, degree of globalization, number of wage earners, industrial production index, inflation and foreign direct investments increased the tax revenues in G7 countries. In BRIC-T countries, inflation, globalization and foreign direct investments have a negative impact on tax revenues.