Determinants of tax revenue: Does liberalization boost or decline it?

Trade liberalization due to its improving role has been at the center of economies in recent years. against public finances of many developing and emerging market countries,it still acts as develop alternative source of revenue. using a panel of 83 countries,over 1990-2012,we perform generalized method of moment regression to test the hypothesis whether trade liberalization boosts tax revenue. also,this paper assesses the statistical significance number of potential determinants of tax revenue as a share of gdp. the results of dynamic panel estimation show more trade liberalization is accompanied by more tax revenue. among the variables that exert a statistically significant influence on tax revenue are the following ones: gdp growth rate,share of agriculture over gdp,official exchange rate,urbanization and democracy. therefore,the study concludes that there is the need for appropriate macroeconomic policy to enhance the trade liberalization in order to accelerate government revenue. © 2016,statistical economic and social research and.