RT Journal Article
T1 Convergence analysis of the tax burden and economic development in OECD countries: a causality analysis
A1 Isla-Castillo, Fernando
A1 Montes-Caparrós, Ana Patricia
A1 Domínguez-Martínez, José M.
K1 Desarrollo económico y social
K1 Organización de Cooperación y Desarrollo Económico
K1 Impuestos
AB Economic development strongly influences both the level and scope of the tax burden, while the level andstructure of taxation can, in turn, decisively influence economic development. Similarly, the convergence pro-cesses of both phenomena might be interrelated. This paper analyses the convergence of both the tax burden andeconomic development, as measured by the tax level ratio and GDP per capita, respectively, in OECD countriesover the period 1995–2022. To analyse the possible interdependence between the tax burden and economicdevelopment, we use a recursive panel analysis and control for heterogeneity with fixed effects to estimate thetime evolution of the convergence rates of both variables. Our findings show that the speed of convergence of thetax burden is much higher than that of GDP per capita. During the recessionary phase of the economic cycle, thespeed of economic convergence increases because better positioned countries experience a larger decline ingrowth than those initially in a worse position; whereas during the expansionary phase of the cycle, the oppositeholds. The Granger causality test confirms that convergence in GDP per capita influences convergence in the taxburden, but not vice versa.
PB ELSEVIER
YR 2026
FD 2026-02-27
LK https://hdl.handle.net/10630/46127
UL https://hdl.handle.net/10630/46127
LA eng
NO Fernando Isla-Castillo, Ana Patricia Montes-Caparrós, José M. Domínguez-Martínez, Convergence analysis of the tax burden and economic development in OECD countries: a causality analysis, Socio-Economic Planning Sciences, Volume 105, 2026, 102452, ISSN 0038-0121, https://doi.org/10.1016/j.seps.2026.102452.
NO Funding for open access charge: Universidad de Málaga / CBUA
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 10 abr 2026