Estmiating Tax Capcity and Tax Effort in Jordan

Ahmad A Al-Majali

Abstract


This paper deals with the concept and measurement of the tax capcity and tax effort in Jordan, it employs a cross-country study forming a sample of 49 countries during 2000-2013. The study was based on a model estimating the Generalized Method of Moments (GMM) for cross sectional data.
The results of the model analysis has shown positive relationship between the tax burden and the share of the agriculture sector in GDP, While it is inverse with the degree of trade openness, the growth rate in population, per capita GDP, and institutional quality index in the country. The results show that the tax effort in Jordan was high in 2008 reach 15.3% to fall afterward to 1.03 in 2013.

Keywords


Tax Effort, Tax Burden, GDP

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