Keyifli, Nazlı; Özhan, Mahir

In this study, the effects of urbanization and democracy factors on tax revenues are examined empirically in terms of G20 countries. For this purpose, a survey was conducted for G20 country covering the period 2005-2018. The dependent variable of the study is tax revenues (% GDP). As independent variables, the urbanization rate, the level of democracy, GDP per capita, commercial openness, and differently from studies in the literature the moderator effect of democracy and urbanization were used. The findings obtained by using the System-Generalized Moments Method (GMM) estimator reveal that the urbanization rate and the level of democracy have statistically significant and positive effects on tax revenues. In summary, it is seen that the preferences of different classes are effective in the tax policies applied / to be applied in the said countries.