The Impact of Trade Liberalization on Tax Structure in Developing Countries

In this paper, we investigate the impact of trade liberalization on tax structure in a panel 97 developing countries for the period 1993-2012. Our empirical results, based on the fixed-effect estimator, reveal that trade liberalization in the form of trade openness did not seem to have a strong impact on major tax sources of developing countries. Instead, trade liberalization in the form of tariff reduction seems to have a contribution to tax structure in these countries.