Tax Effort Performance of OECD Countries Based on Club Convergence Analysis

This study examines the tax effort performance of countries based on club convergence analysis. The study defined tax effort as a ratio of tax revenues to gross domestic product, and the estimation equation was analysed to converge countries in OECD and sub-clubs. According to the results of the estimation equation used for 34 OECD countries, although there is no statistically significant relationship between tax effort and the informal economy, it has been seen that the informal economy variable affects the tax effort for Club 4 countries where Turkiye is located. In addition, Denmark ranks first and Turkiye 24th in the tax effort ranking that considers OECD countries. In the ranking made for the club four countries, Israel is in the first place, and Turkiye is in the 4 th place.