Impact of corruption on tax revenues

The effect of narrowly defined corruption on tax revenues as misuse of public power for the purpose of personal interests has been tried to be determined. The impact of corruption on tax revenues in the study is a panel analysis dynamic panel analysis used when examining 26 OECD member countries based on data from 2000-2020. Before performing this analysis, the assumption of stability in the GMM test was provided by performing the stability test. After the analysis, when the relationship between corruption and tax revenues increased, tax revenues were reduced. This shows that corruption negatively affects economic interaction. Features total tax revenue is heavily influenced by corruption. An inverse and statistically significant relationship between tax and corruption has been identified.