Political development and tax revenues: Evidence from selected countries of Middle East

Abstract

This paper investigated the impact of political developments (civil liberties index and political rights index) on tax revenues index (ratio of total tax revenues in real GDP) in some selected countries of Middle East for the period of 1990-2010. Results of hypothesis testing with generalized method of moments (GMM) in selected countries of Middle East between 1990 and 2010 indicated that Political development (civil liberties index and political rights index) had significant effect on the ratio of total tax revenue on real GDP.