Globalization and its Impact on Tax Revenues in Iran Mehdi Taghi Soltani

Tax Revenues stand among the most important financial resources for the governments، and an effective instrument for adopting fiscal policies for most countries. Comparing other sources of revenues with tax، as the most important and most stable source of revenue for the governments، shows that the higher the contribution of tax in government spending، the less the undesirable economic consequences would be. Taking the importance of tax into consideration and regarding the positive and negative consequences of globalization trend، this aper employs a logarithm model to study tax revenues and impacts of globalization index، as well as other macroeconomic variables، using an Auto- Regressive Distributed Lag Model، for the time period of (1973-2006). The Long Run Coefficients and Co integration among variables with the Error Correction Model is assessed too. The results indicate a straight relation among them. The impact of this variable is also evaluated by measuring capital flight with ECM and ARDL models. The results، again، reflect a positive relation between capital flight and tax revenues.