The Effect of Production Space Change on Business Income Tax in Iranian Economy

Assessment of structural change circumstance of Iran's economic activities and its effects on business income tax is the major aim of present study. In literature of economic development, several methods have been proposed to measure structural changes, that among them "measuring change in production space based on international trade indices" method has been applied in this paper. Using mentioned method presents that the Iranian economy's production space occupied mainly by petroleum, chemical and primary sector (agricultural and raw material) goods and any technological similarity (proximity) among exporting goods has not been seen. In addition, based on stochastic frontier model results, professions dependent into mentioned sectors had pour performance in tax payment. In contrast, activities containing small density in production space had appropriate performance in tax payment.