Determinants of Tax Revenues in the Arab Countries

Abstract

This study aimed to examine the impact of determinants of tax revenues represented by (GDP per capita, value added of the industrial sector, and value added of the agricultural sector) on the tax revenues of the Arab countries represented by (Jordan, Egypt, and Lebanon) for the period of time (2000-2020). The study used the analysis of time series and cross-sectional data using the autoregressive distributed lag model (ARDL) to test the hypotheses of the study. The results of the analysis of the autoregressive distributed lag model, showed that GDP per capita, value added of the industrial sector, and value added of the agricultural sector have a positive and significant impact on the tax revenues of the Arab countries (Jordan, Egypt, and Lebanon) in the long run. Therefore, the per capita GDP, the value added of the industrial sector, and the value added of the agricultural sector are good determinants of tax revenues in the Arab countries. The study reached a number of recommendations, the most important of which is to work to reduce taxes on economic sectors such as the industrial and agricultural sectors, which stimulates an increase in production and employment, and increases the tax base, thus increasing tax revenues.