Fiscal deficit is the core issue of most of the developing countries over the past several decades. The reason behind the large increase in fiscal imbalance is the rapid expansion in expenditure and low revenue collection. Hence, efficient tax system is crucial for these countries. Since Ethiopian is one among developing countries, pattern of tax revenues and economic growth across country has become a significant concern. Due to aforementioned deficiencies, Ethiopia struggles with budget deficits for a long time. The focus of this paper is to identify determinants of tax revenue in Ethiopia by using a secondary data and multiple variables regression model using OLS method. Quantitative research method was employed on time series data set for the years 1999/00 to 2015/16. Both descriptive statistics and econometric tools were employed to analyze and present the data collected from concerned bodies. The finding reveals that, industry sector share to GDP, per capita income and trade openness as measured by share of export and import to GDP have significant positive effect on tax revenue whereas; agriculture sector share to GDP and annual rate of inflation have significant and negative effect on tax revenue as measured by share of tax revenue to GDP.
| Published in | Economics (Volume 6, Issue 6) |
| DOI | 10.11648/j.eco.20170606.11 |
| Page(s) | 58-64 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
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Copyright © The Author(s), 2018. Published by Science Publishing Group |
Determinants, Ethiopia, Tax Revenue
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APA Style
Neway Gobachew, Kenenisa Lemie Debela, Woldemicael Shibiru. (2018). Determinants of Tax Revenue in Ethiopia. Economics, 6(6), 58-64. https://doi.org/10.11648/j.eco.20170606.11
ACS Style
Neway Gobachew; Kenenisa Lemie Debela; Woldemicael Shibiru. Determinants of Tax Revenue in Ethiopia. Economics. 2018, 6(6), 58-64. doi: 10.11648/j.eco.20170606.11
AMA Style
Neway Gobachew, Kenenisa Lemie Debela, Woldemicael Shibiru. Determinants of Tax Revenue in Ethiopia. Economics. 2018;6(6):58-64. doi: 10.11648/j.eco.20170606.11
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Download@article{10.11648/j.eco.20170606.11,
author = {Neway Gobachew and Kenenisa Lemie Debela and Woldemicael Shibiru},
title = {Determinants of Tax Revenue in Ethiopia},
journal = {Economics},
volume = {6},
number = {6},
pages = {58-64},
doi = {10.11648/j.eco.20170606.11},
url = {https://doi.org/10.11648/j.eco.20170606.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20170606.11},
abstract = {Fiscal deficit is the core issue of most of the developing countries over the past several decades. The reason behind the large increase in fiscal imbalance is the rapid expansion in expenditure and low revenue collection. Hence, efficient tax system is crucial for these countries. Since Ethiopian is one among developing countries, pattern of tax revenues and economic growth across country has become a significant concern. Due to aforementioned deficiencies, Ethiopia struggles with budget deficits for a long time. The focus of this paper is to identify determinants of tax revenue in Ethiopia by using a secondary data and multiple variables regression model using OLS method. Quantitative research method was employed on time series data set for the years 1999/00 to 2015/16. Both descriptive statistics and econometric tools were employed to analyze and present the data collected from concerned bodies. The finding reveals that, industry sector share to GDP, per capita income and trade openness as measured by share of export and import to GDP have significant positive effect on tax revenue whereas; agriculture sector share to GDP and annual rate of inflation have significant and negative effect on tax revenue as measured by share of tax revenue to GDP.},
year = {2018}
}
TY - JOUR T1 - Determinants of Tax Revenue in Ethiopia AU - Neway Gobachew AU - Kenenisa Lemie Debela AU - Woldemicael Shibiru Y1 - 2018/02/12 PY - 2018 N1 - https://doi.org/10.11648/j.eco.20170606.11 DO - 10.11648/j.eco.20170606.11 T2 - Economics JF - Economics JO - Economics SP - 58 EP - 64 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20170606.11 AB - Fiscal deficit is the core issue of most of the developing countries over the past several decades. The reason behind the large increase in fiscal imbalance is the rapid expansion in expenditure and low revenue collection. Hence, efficient tax system is crucial for these countries. Since Ethiopian is one among developing countries, pattern of tax revenues and economic growth across country has become a significant concern. Due to aforementioned deficiencies, Ethiopia struggles with budget deficits for a long time. The focus of this paper is to identify determinants of tax revenue in Ethiopia by using a secondary data and multiple variables regression model using OLS method. Quantitative research method was employed on time series data set for the years 1999/00 to 2015/16. Both descriptive statistics and econometric tools were employed to analyze and present the data collected from concerned bodies. The finding reveals that, industry sector share to GDP, per capita income and trade openness as measured by share of export and import to GDP have significant positive effect on tax revenue whereas; agriculture sector share to GDP and annual rate of inflation have significant and negative effect on tax revenue as measured by share of tax revenue to GDP. VL - 6 IS - 6 ER -
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