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Seda Ozekicioglu, Yilmaz Bayar: Tax revenues, corruption and governance in OECD
                                                                                countries: a panel regression analysis



               a  proxy  for  corruption  and  the  public  governance  was  represented  by  indexes  of  government
               effectiveness, regulatory quality, and rule of law of World Bank (2017). These indicators based
               on  31  data  sources  reporting  the  perceptions  of  governance  of  a  large  number  of  survey
               respondents  and  expert  assessments  worldwide  (see  Kaufmann  et  al.  (2010)  for  detailed
               information). The value of each index changes between -2,5 (weak) and 2,5 (strong). Our study
               period and sample were determined by data availability and the sample consisted of Australia,
               Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany,
               Greece,  Hungary,  Iceland,  Ireland,  Israel,  Italy,  Japan,  Latvia,  Luxembourg,  Mexico,
               Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, South Korea,
               Spain, Sweden, Switzerland, Turkey, United Kingdom, and United States. The variables used in
               the econometric analysis, their symbols and data sources were presented in Table 1.


                                                 Table 1: Data Description

                   Variables                            Description            Source
                   TAXREV                    Total tax revenues (% of GDP)     OECD (2017b)
                   COC                       Control of corruption
                   GE                        Government effectiveness          World Bank (2017)
                   RQ                        Regulatory quality
                   ROL                       Rule of law

               The econometric analysis is conducted with use of Stata 14.0, WinRATS Pro. 8.0 and Gauss 11.0
               software packages. The descriptive statistics and correlation matrix of the variables in the study
               were  presented  in  Table  2.  The  correlation  matrix  demonstrated  that  there  was  no
               multicollinearity problem among the independent variables.

                           Table 2: Descriptive Statistics and Correlation Matrix of the Dataset

                      Variables     Obs          Mean          Std.Dev.         Min            Max
                     TAXREV         490         33,37971       7,237841        12,649         49,583
                       COC          490         1,269294       0,8223721     -0,7421037      2,556869
                        GE          490         1,335486       0,5536063      0,0393416      2,358699
                        RQ          490         1,287847       0,4257166      0,0309615      1,970678
                       ROL          490         1,273343       0,6137272      -0,71572       2,120458
                                 TAXREV           COC             GE             RQ            ROL
                     TAXREV        1,0000
                       COC         0,4115        1,0000
                        GE         0,4293       0,270234        1,0000
                        RQ         0,3357       0,235922       0,348895        1,0000
                       ROL         0,4501       0,267050       0,304829       0,338866        1,0000







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