# **Table 2 – Determinants of Fiscal Revenue**

Panel A: Population growth used as proxy for demographic characteristic

|**Dependent Variable: Fiscal**|**Revenue**|**in % of GD**|**P**|||||||
|---|---|---|---|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|
|||**1994-200**|**9**||**1994-200**|**1**||**2002-20**|**09**|
|Constant|26.234<br>(28.464)*|17.798<br>*(15.369)*|17.997<br>*(13.694)***|25.496<br>(18.179)**|16.519<br>(8.98)***|16.677<br> (8.477)***|26.992<br>(21.484)*|16.932<br>*(9.903)**|19.338<br>*(10.354)***|
|GDP per capita (constant )|0.811<br>(3.394)**|0.192<br>*(0.746)|0.305<br>(1.109)|0.916<br>(2.163)**|0.139<br> (0.342)|-0.098<br>(-0.214)|0.686<br>(2.249)**|0.116<br> (0.304)|0.877<br>(2.418)**|
|Population Growth|-0.687<br>(-2.972)*|-0.447<br>* (-1.85)*|-0.519<br>(-2.117)**|-0.349<br>(-1.097)|0.623<br>(1.816)*|0.45<br>(1.286)|-0.77<br>(-2.043)**|-1.331<br>(-3.486)*|-1.506<br>* (-3.856)***|
|Trade openness<br>(% of GDP)|0.054<br>(11.135)*|0.031<br>*(6.626)**|0.031<br>*(6.47)***|0.055<br>(7.111)***|0.028<br>(3.739)**|0.029<br>*(3.944)***|0.053<br>(8.442)**|0.031<br>*(5.152)**|0.029<br>*(4.737)***|
|Agriculture value added|-0.317|-0.219|-0.174|-0.299|-0.236|-0.206|-0.365|-0.158|-0.109|
|(% of GDP)|(-14.229)|* (-9.695)*|* (-6.799)***|(-10.179)*|(-8.232)*|* (-6.295)***|(-9.381)**|(-3.871)*|* (-2.344)**|
|CORRUPTION INDEX||-0.87|||-0.736|||-1.172||
|||(-6.749)*|**||(-3.806)*|**||(-5.42)**|*|
|BUREAUCRACY INDEX|||-0.757<br>(-4.986)***|||-0.743<br>(-3.236)***|||-0.626<br>(-2.883)***|
|OBS|1306|1108|1108|582|475|475|724|633|633|
|Adjusted R2|0.55|0.64|0.64|0.56|0.68|0.68|0.55|0.63|0.61|

Panel B: Age dependency used as proxy for demographic characteristic

|**Dependent Variable: Fisc**|**al Revenue**|**in % of G**|**DP**|||||||
|---|---|---|---|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|
|||**1994-200**|**9**||**1994-200**|**1**||**2002-200**|**9**|
|Constant|24.248<br>(15.576)*|19.033<br>*(11.983)*|18.529<br>*(10.573)***|21.592<br>(8.832)**|14.604<br>*(5.514)**|14.125<br>*(5.074)***|27.365<br>(12.02)**|19.693<br>*(8.382)**|22.071<br>*(8.759)***|
|GDP per capita (constant )|0.695<br>(2.935)**|0.12<br>*(0.469)|0.268<br>(0.978)|0.93<br>(2.199)**|0.204<br> (0.499)|-0.095<br>(-0.208)|0.518<br>(1.765)*|-0.191<br>(-0.513)|0.665<br>(1.846)*|
|Age dependency ratio|0.014<br>(0.725)|-0.032<br>(-1.666)*|-0.018<br> (-0.966)|0.048<br>(1.593)|0.043<br>(1.528)|0.043<br>(1.523)|-0.019<br>(-0.635)|-0.073<br>(-2.585)*|-0.064<br>* (-2.206)**|
|Trade openness|0.051|0.029|0.029|0.051|0.031|0.032|0.051|0.029|0.026|
|(% of GDP)|(10.615)*|*(6.409)**|*(6.164)***|(6.733)**|*(4.367)**|*(4.461)***|(8.189)**|*(4.749)**|*(4.226)***|
|Agriculture value added<br>(% of GDP)|-0.344<br>(-13.61)**|-0.21<br>(-8.386)*|-0.178<br>* (-6.411)***|-0.331<br>(-9.841)**|-0.252<br>(-7.778)*|-0.221<br>* (-6.205)***|-0.388<br>(-9.565)*|-0.174<br>* (-4.249)*|-0.148<br>* (-3.184)***|
|CORRUPTION INDEX||-0.896|||-0.744|||-1.243||
|||(-6.866)*|**||(-3.844)*|**||(-5.7)***||
|BUREAUCRACY INDEX|||-0.735<br>(-4.844)***|||-0.796<br>(-3.525)***|||-0.569<br>(-2.608)***|
|OBS|1306|1108|1108|582|475|475|724|633|633|
|Adjusted R2|0.55|0.64|0.64|0.56|0.68|0.68|0.54|0.62|0.61|

Note: The estimation technique is panel OLS with regional and time dummies. t-statistics are reported in parenthesis. The estimated coefficients of GDP per capita are multiplied by 10,000. The dependent variable is the share of fiscal revenue in percentage of GDP. See Table A2 for the definitions of the variables. We also include both regional and time dummies. The regions are defined in Table A4. The time dummies are annual.

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