Extending the Determinants of Tax Efforts Through Digitalization and Gender Parity: Empirical Insights From G‐20 Nations

ABSTRACT Purpose The current study aims to investigate the determinants of tax efforts of the government across G‐20 nations. By using economic policy, social and institutional determinants, the study seeks to provide insights that may assist G‐20 nations in formulating effective policies to boost tax revenue. Design/Methodology/Approach This study has used the panel regression modeling by considering the G‐20 nations as cross section units by covering the data set from the 1970s to 2021. Findings The results exhibit that GDP per capita, agriculture sector, trade openness, digitalization, gender parity, and political rights positively boost the tax efforts of G‐20 nations. Conversely, the findings assert that foreign direct investment, official development assistance, and life expectancy rate do not have any significant impact on the tax efforts of the government. Practical Implications The findings have major policy implications for government to devise their policies and strategies to boost the tax revenue efficiency of G‐20 nations. The findings assert that G‐20 nations should foster greater trade opportunities with international partners through favorable policies. Moreover, the government should actively promote gender equality in education and employment and should focus on improving the ICT penetration across G‐20 nations to boost the revenue mobilization. Originality/Value The current study will add a novel contribution to the existing literature on determinants of tax efforts of the government. To the knowledge, this will be the first study at the international level to explore the determinants of tax efforts across G‐20 nations by incorporating gender parity, digitalization, and political rights along with conventional determinants.