Knowledge Economy Studies

Improving Tax Revenues in Iran's Provinces within the Framework of the Components of Knowledge-Based Economy

Document Type : Original Article

Authors

Mohammad Ghaffary Fard 1
Mohammad Ziayee 2

1 Associate professor, Department of Economic Sciences, Faculty of Economic and Management, Ahlul Bayt International University, Tehran, Iran.

2 M.A. in Economics, Department of Economic Sciences, Faculty of Economic and Management, Ahlul Bayt International University, Tehran,Iran.

https://doi.org/10.22034/kes.2025.2056839.1051
Abstract
A knowledge-based economy leads to a more efficient and dynamic national economy, contributing to the creation of more products, services, and innovation. Consequently, it brings about the outcomes of a stable economy, characterized by consistent and sustainable tax revenues. By focusing on innovation, advanced technologies, and specialized human capital, a knowledge-based economy plays a crucial role in improving the economic structure of the country. A knowledge-based economy is one in which the production, distribution, and application of knowledge are the main drivers of economic growth, wealth creation, wealth distribution, and job creation in all industrial sectors. The purpose of this research study is to investigate the impact of the knowledge-based economy on tax revenues in Iranian provinces. From the perspective of its purpose, this study is an applied study, and in terms of methodology, it is a panel data study, which has been conducted econometrically using the FMOLS panel data method. The findings indicated a positive and significant relationship between the components of the knowledge-based economy and tax revenues. As the components of the knowledge-based economy increase in Iranian provinces, tax revenues also rise. Furthermore, the model estimation, with the inclusion of auxiliary variables, showed that inflation rate, Gross Domestic Product (GDP), and government expenditures have a positive and significant impact on tax revenues, while the unemployment rate affects tax revenues negatively and significantly. Therefore, regional policymakers should prioritize enhancing human skills, expanding knowledge-based institutions, promoting innovative and creative centers, and developing technological infrastructure to increase tax revenues.

Keywords

Information and Communication Technology
Innovation
Knowledge-Based Economy
Least Squares Method
Tax Revenues

Subjects

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Knowledge Economy Studies
Volume 2, Issue 1
April 2025
Pages 197-215

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