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Research Article

Impact of direct and indirect taxes on economic development: A comparison between developed and developing countries

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Article: 2141423 | Received 12 Aug 2022, Accepted 25 Oct 2022, Published online: 20 Nov 2022

Figures & data

Table 1. Descriptive statistics in developing vs. developed countries

Table 2. Correlation matrix for developing countries

Figure 1. Tax structures and ratio by income level; (a) developed; (b) developing; (c) developed and developing countries.

Figure 1. Tax structures and ratio by income level; (a) developed; (b) developing; (c) developed and developing countries.

Figure 2. Plots of the average tax as a percentage of GDP against average GDP per capita over 2000–2020, (a) developed; (b) developing; (c) developed and developing countries.

Figure 2. Plots of the average tax as a percentage of GDP against average GDP per capita over 2000–2020, (a) developed; (b) developing; (c) developed and developing countries.

Figure 3. Plots of the average GDP per capita against (a) average share of income tax; (b) average share of tax on goods and services; (c) average share of taxes on international trade; (d) average share of other taxes for developed countries.

Figure 3. Plots of the average GDP per capita against (a) average share of income tax; (b) average share of tax on goods and services; (c) average share of taxes on international trade; (d) average share of other taxes for developed countries.

Figure 4. Plots of the average GDP per capita against (a) average share of income tax; (b) average share of tax on goods and services; (c) average share of taxes on international trade; (d) average share of other taxes, developing country.

Figure 4. Plots of the average GDP per capita against (a) average share of income tax; (b) average share of tax on goods and services; (c) average share of taxes on international trade; (d) average share of other taxes, developing country.

Table 3. Results of fixed effects (within) estimations dependent variable: GDP per capita growth (N = 90 developing and 47 developed countries; T = 21; sample period = 2000–2020)

Table 4. Results of fixed effects (within) estimations dependent variable: FDI (net inflows) (N = 90 developing and 47 developed countries; T = 21; sample period = 2000–2020)

Table 5. Results of fixed effects (within) estimations dependent variable: Unemployment (N = 90 developing and 47 developed countries; T = 21; sample period = 2000–2020)

Table A1. Developing countries

Table A2. Developed countries