Case studies for developing countries

Chapter 6 extends the analysis to developing countries using the same methodological framework—random effects, instrumental variables estimation, and OLS regression. Our findings indicate that postmaterialist values are also present in regions such as Africa, Asia, Central and Eastern Europe (CEE), and Latin America, albeit to a lesser degree, as reflected in their comparatively lower tax-to-GDP ratios. The results suggest that countries with underdeveloped tax systems cannot simply replicate the fiscal structures of developed economies without a parallel shift in societal values—specifically, an increase in postmaterialist orientations. This finding has important implications for the design and implementation of taxation (i.e., even the environmental taxation) across different development contexts. The persistence of materialist priorities implies that the transition toward higher taxation, particularly for environmental purposes, requires time and structural support. Historical legacies such as authoritarian governance, prolonged economic hardship, or resource scarcity may continue to influence public attitudes and institutional capacity long after democratization. These contextual factors must be taken into account when considering fiscal convergence between developed and developing countries.