Governance: A Source to Increase Tax Revenue in Pakistan
Improved governance in any economy indicates government stability, secured law and order, and minimum internal and external conflicts. A higher level of governance may demonstrate the healthy performance of economic activities and tax revenue collection. Hence, it is vital to investigate the relatio...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2021/6663536 |
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| _version_ | 1832568530093998080 |
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| author | Muhammad Shahid Hassan Haider Mahmood Muhammad Naveed Tahir Tarek Tawfik Yousef Alkhateeb Ayesha Wajid |
| author_facet | Muhammad Shahid Hassan Haider Mahmood Muhammad Naveed Tahir Tarek Tawfik Yousef Alkhateeb Ayesha Wajid |
| author_sort | Muhammad Shahid Hassan |
| collection | DOAJ |
| description | Improved governance in any economy indicates government stability, secured law and order, and minimum internal and external conflicts. A higher level of governance may demonstrate the healthy performance of economic activities and tax revenue collection. Hence, it is vital to investigate the relationship between governance and tax revenue collection in any developing country. Therefore, we aim to investigate the impact of governance on tax revenue in Pakistan using control variables inflation and industrial value-added. The Autoregressive Distributive Lag (ARDL) cointegration technique is utilized to find the long- and short-run effects of hypothesized variables on the tax revenue using a period 1976–2019. After employing a cointegration on the hypothesized model, the results expose that government stability, law and order, and internal and external conflicts leave a positive and significant impact on tax revenue in the long and short run. Hence, it is concluded that governance is an essential source in expanding tax revenue in Pakistan. Moreover, industrial value-added and inflation also show positive effects on the tax revenue. On the grounds of these results, it is proposed that the government should make serious efforts to improve governance and industrial activities for better tax revenue collection. |
| format | Article |
| id | doaj-art-dba2f6bd40064a88ba16f6617df043a6 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-dba2f6bd40064a88ba16f6617df043a62025-02-03T00:58:58ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/66635366663536Governance: A Source to Increase Tax Revenue in PakistanMuhammad Shahid Hassan0Haider Mahmood1Muhammad Naveed Tahir2Tarek Tawfik Yousef Alkhateeb3Ayesha Wajid4Department of Economics, School of Business and Economics, University of Management and Technology, Lahore 54000, PakistanDepartment of Finance, College of Business Administration, Prince Sattam bin Abdulaziz University, Alkharj 11942, Saudi ArabiaDepartment of Economics, Forman Christian College, Lahore 54000, PakistanDepartment of Agricultural Economics, Kafrelsheikh University, Kafrelsheikh 33512, EgyptDepartment of Economics, School of Business and Economics, University of Management and Technology, Lahore 54000, PakistanImproved governance in any economy indicates government stability, secured law and order, and minimum internal and external conflicts. A higher level of governance may demonstrate the healthy performance of economic activities and tax revenue collection. Hence, it is vital to investigate the relationship between governance and tax revenue collection in any developing country. Therefore, we aim to investigate the impact of governance on tax revenue in Pakistan using control variables inflation and industrial value-added. The Autoregressive Distributive Lag (ARDL) cointegration technique is utilized to find the long- and short-run effects of hypothesized variables on the tax revenue using a period 1976–2019. After employing a cointegration on the hypothesized model, the results expose that government stability, law and order, and internal and external conflicts leave a positive and significant impact on tax revenue in the long and short run. Hence, it is concluded that governance is an essential source in expanding tax revenue in Pakistan. Moreover, industrial value-added and inflation also show positive effects on the tax revenue. On the grounds of these results, it is proposed that the government should make serious efforts to improve governance and industrial activities for better tax revenue collection.http://dx.doi.org/10.1155/2021/6663536 |
| spellingShingle | Muhammad Shahid Hassan Haider Mahmood Muhammad Naveed Tahir Tarek Tawfik Yousef Alkhateeb Ayesha Wajid Governance: A Source to Increase Tax Revenue in Pakistan Complexity |
| title | Governance: A Source to Increase Tax Revenue in Pakistan |
| title_full | Governance: A Source to Increase Tax Revenue in Pakistan |
| title_fullStr | Governance: A Source to Increase Tax Revenue in Pakistan |
| title_full_unstemmed | Governance: A Source to Increase Tax Revenue in Pakistan |
| title_short | Governance: A Source to Increase Tax Revenue in Pakistan |
| title_sort | governance a source to increase tax revenue in pakistan |
| url | http://dx.doi.org/10.1155/2021/6663536 |
| work_keys_str_mv | AT muhammadshahidhassan governanceasourcetoincreasetaxrevenueinpakistan AT haidermahmood governanceasourcetoincreasetaxrevenueinpakistan AT muhammadnaveedtahir governanceasourcetoincreasetaxrevenueinpakistan AT tarektawfikyousefalkhateeb governanceasourcetoincreasetaxrevenueinpakistan AT ayeshawajid governanceasourcetoincreasetaxrevenueinpakistan |