ANALYSIS OF CORRELATION BETWEEN TAX REVENUES AND OTHER ECONOMIC INDICATORS IN EUROPEAN UNION MEMBER STATES

This paper aims to identify the presence or absence of a connection between some factors that influence the evolution of tax revenue in the EU and to quantify its intensity using Pearson correlation coefficient. Testing the bivariate correlation between tax revenues and a range of 15 causal factors lead to a division of variables that determine the evolution of tax revenues into three categories: significant factors such as GDP, net national income per capita, gross added value, gross salary, current account balance, less significant factors of tax revenue such as the employment rate, public expenditures, public debt, and foreign direct investment, and non-factors of tax revenues such as unemployment rate, population, money and interest rates on deposits and loans.