Explore Inter-Relationship between Tax Revenue and Education Index of Select Countries

Abstract

The education level in any country is a key indicator of overall development, both in developing and developed countries. The study’s objective is to explore the interrelationship between tax revenue and the education index of select countries. For the present study, five countries, France, Italy, Brazil, Canada, and India, have been selected. For data analysis, correlation and regression have been calculated. For testing hypothesis, t-test has been administered. Results of correlation show that Canada’s tax revenue and education index are highly correlated compared to the other countries. The study developed the prediction model of the education index for select countries. In all five countries, the results of the t-test show that the regression prediction model has been significant, and the difference between the actual education index and the predicted education index is not significant; this indicates that the model developed by us is significant. It can be applied anywhere in the real world. The prediction model can be used to identify a particular target of education and to determine the amount of tax revenue that will be required to enhance the education level in a particular country.

Keywords: Education Index, Tax Revenue, Relationship, Five Countries, Prediction Model

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