Impact of Globalization on Tax Revenue in Selected Developing Countries with a Panel Data Approach

With regard the wave of globalization، the acceptance of free trade is further enhanced so that globalization is known as the fundamental principle of economic growth in the developing countries. The main purpose of this paper is to investigate the relationship between globalization and tax revenue، in the theoretically and empirically framework. By using a panel of 16 developing countries over the period 1990–2009 and controlling for the endogeneity of several of the explanatory variables، error component two-stage least squares method is used. Controll of determinants of tax revenue، the results of this study show that globalization (the share of international trade in gross domestic product) has a positive and statistically significant effect on tax revenue in developing countries. Another result is that macroeconomic policies and structural characteristics have significant effects on tax revenue and each of these factors plays an important role in determining the impact of globalization on tax revenue.