Impact of public governance on tax revenues: The case of new EU member states

Neoliberal assumptions on public administration reform based on New Public Management have become debatable with the beginning of the XXI century. This situation has brought up the need for a new vision in order to eliminate the current complexities and problems in the field of public administration. This need has led to the emergence of a paradigm called New Public Governance, which emphasises values such as co-production, pluralist state, participation, inter-organisational networks, partnerships and cooperation within the public administration literature. In this way, many states are resorting to multifaceted and complex structural reforms within the public service process, and in this respect, they refer to the core values of the New Public Governance approach. Taxes are among the most intensive areas where both the state and citizens interact with each other. The effects of New Public Governance indicators on taxes gain importance in this context. The aim of this study is to analyse the effects of New Public Governance approach indicators on taxes. In the study prepared by panel regression analyses in the sample of countries that have recently joined the European Union, it is concluded that government effectiveness, rule of law, regulatory quality, freedom of expression and accountability indicators have a positive effect on tax revenues, while corruption, political stability and non-violence indicators do not have a significant effect on tax revenues.