Resource Dependence and Fiscal Effort in Sub-Saharan Africa

Thomas, Alun; Trevino, Juan

doi:10.5089/9781484391501.001

Cited by 44 publications

(43 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This is a striking gap, given that most African countries fall far below the 15% target set by the Abuja Declaration of 2001 [23], and that considerable attention is being paid to improving the tax collection capacity of low- and middle-income countries [13–15]. This begs the questions: which sectors are benefiting from improved fiscal space, what explains the public health sector’s position in this competition for more resources, and how can Ministries of Health influence resource allocation decision-making in their favour?…”

Section: Introductionmentioning

confidence: 99%

Does expanding fiscal space lead to improved funding of the health sector in developing countries?: lessons from Kenya, Lagos State (Nigeria) and South Africa

Doherty

Kirigia

Okoli

et al. 2018

Global Health Action

View full text Add to dashboard Cite

Background: The global focus on promoting Universal Health Coverage has drawn attention to the need to increase public domestic funding for health care in low- and middle-income countries. Objectives: This article examines whether increased tax revenue in the three territories of Kenya, Lagos State (Nigeria) and South Africa was accompanied by improved resource allocation to their public health sectors, and explores the reasons underlying the observed trends. Methods: Three case studies were conducted by different research teams using a common mixed methods approach. Quantitative data were extracted from official government financial reports and used to describe trends in general tax revenue, total government expenditure and government spending on the health sector and other sectors in the first decade of this century. Twenty-seven key informant interviews with officials in Ministries of Health and Finance were used to explore the contextual factors, actors and processes accounting for the observed trends. A thematic content analysis allowed this qualitative information to be compared and contrasted between territories. Findings: Increased tax revenue led to absolute increases in public health spending in all three territories, but not necessarily in real per capita terms. However, in each of the territories, the percentage of the government budget allocated to health declined for much of the period under review. Factors contributing to this trend include: inter-sectoral competition in priority setting; the extent of fiscal federalism; the Ministry of Finance’s perception of the health sector’s absorptive capacity; weak investment cases made by the Ministry of Health; and weak parliamentary and civil society involvement. Conclusion: Despite dramatic improvements in tax revenue collection, fiscal space for health in the three territories did not improve. Ministries of Health must strengthen their ability to motivate for larger allocations from government revenue through demonstrating improved performance and the relative benefits of health investments.

show abstract

Section: Introductionmentioning

confidence: 99%

Does expanding fiscal space lead to improved funding of the health sector in developing countries?: lessons from Kenya, Lagos State (Nigeria) and South Africa

Doherty

Kirigia

Okoli

et al. 2018

Global Health Action

View full text Add to dashboard Cite

show abstract

“…El cuadro 1 presenta los resultados de las estimaciones utilizando los datos de la muestra completa, así como sólo los datos de 25% de los países que están clasificados como los de mayor exposición a recursos naturales, de acuerdo con la definición de Thomas y Treviño (2013). En este cuadro partimos haciendo un ejercicio muy simple, que corresponde a utilizar para cada país el dato del cambio en los activos netos y de cada una de las variables, entre 2005 y 2014.…”

Section: Resultados Empíricosunclassified

“…Los resultados del cuadro muestran que la significancia del coeficiente de la varianza de ingresos por recursos naturales desaparece para la muestra completa, aunque se mantiene en terreno positivo, pero se mantiene para el set de países más expuestos a los commodities, de acuerdo con el criterio de Thomas y Treviño (2013). En este caso, el coeficiente de la varianza de ingresos por recursos naturales se mantiene significativo y en magnitudes mayores al encontrado en el cuadro 1.…”

Section: Resultados Empíricosunclassified

Ahorro fiscal precautorio en países intensivos en recursos naturales

Cerda

Larraín

2018

El Trimestre

View full text Add to dashboard Cite

Background: This paper studies the effect of the variability in fiscal revenues (induced by volatility in natural resource prices) on public saving in the case of natural resource dependent economies. Methodology: A theoretical model is used to extend the work of Van der Ploeg and Venables (2011). Later, an econometric analysis is performed with data from panels of two different data samples. We find evidence in favor of the hypothesis. Results: It is found that the greater the variance in fiscal revenues the greater should be the level of net fiscal assets, due to precautionary saving. Conclusions: The volatility of fiscal revenues in countries exposed to commodities leads governments to precautionary savings and to have higher levels of fiscal savings. Key words: fiscal revenue volatility; precautionary saving; fiscal savings. JEL Classification: H0, H20, H39. RESUMENAntecedentes: Este trabajo estudia el efecto de la variabilidad de los ingresos fiscales -inducidos por volatilidad en precios de productos relacionados con recursos * Artículo recibido el 31 de enero de 2017 y aceptado el 8 de agosto de 2017. Los autores agradecen la excelente ayuda de investigación de Álvaro Silva. Cualquier error es responsabilidad de los autores. ** Rodrigo Cerda N. y Felipe Larraín B., Instituto de Economía y Clapes UC, Pontificia Universidad Católica de Chile (correos electrónicos: rcerdan@uc.cl y flarrainb@uc.cl). Felipe Larraín C., Instituto de Economía, Pontificia Universidad Católica de Chile (correo electrónico: flarrai3@uc.cl).EL TRIMESTRE ECONÓMICO, vol. LXXXV (2), núm. 338, abril-junio de 2018, pp. 255-276 EL TRIMESTRE ECONÓMICO 338 256 naturales-sobre el ahorro público en el caso de economías dependientes de recursos naturales. Metodología: Se utiliza un modelo teórico que extiende el trabajo de Van der Ploeg y Venables (2011). Posteriormente, se realiza un estudio econométrico con datos de paneles de dos muestras de datos distintas. Se encuentra evidencia a favor de la hipótesis planteada. Resultados: Se encuentra que a mayor varianza en ingresos fiscales mayor debe ser el nivel de activos netos del fisco, debido a razones de ahorro precautorio. Conclusiones: La volatilidad de ingresos fiscales en países expuestos a commodities lleva a los gobiernos a realizar ahorro precautorio y a tener mayores niveles de ahorros fiscales. Palabras clave: volatilidad de ingresos fiscales; ahorro precautorio; ahorro fiscal.Clasificación JEL: H0, H20, H39. INTRODUCCIÓNN o es fácil para gobiernos de países dependientes de recursos naturales resistir a las presiones políticas que se generan para aumentar el gasto cuando los precios de las materias primas 1 que exportan experimentan alzas. Para el caso chileno en particular, resistir a estas presiones a la larga dio la razón a la autoridad económica: los activos públicos que se acumularon durante el boom de commodities que se inició en 2003 permitió enfrentar mejor la crisis que se desencadenó en 2008 (Frankel, 2011.La volatilidad de los ingresos por recursos naturales p...

show abstract

“…Moreover, reliance on non-resource government public revenue as a dependent variable achieves much greater homogeneity than total government public revenue (see Brun, Chambas and Mansour, 2015: p206). For example, Thomas and Treviño (2013), and Brun, Chambas and Mansour (2015) observe a positive effect of trade openness on non-resource tax revenue. Crivelli and Gupta (2014) saw a mixed effect of non-resource trade openness (measured as the sum of non-resource exports plus imports, expressed relative to GDP) on the mobilization of domestic non-resource tax revenue over a sample of 35 resource-rich countries.…”

Section: -What Does the Empirical Literature Provide In Terms Of The mentioning

confidence: 99%

Does Trade Openness Contribute to Driving Financing Flows for Development?

Brun¹,

Gnangnon²

2017

WTO Working Papers

View full text Add to dashboard Cite

Trade has been recognized in the 2030 development Agenda as well as in the Addis Ababa Agenda for Action as an important means for the implementation of the Sustainable Development Goals (SDGs). This paper questions whether trade openness could be an important driver of financing for development flows, notably development aid (ODA), Foreign Direct Investment (FDI) inflows, and government public revenue, the latter being the ultimate financing source for development for any country. The paper also takes advantage of the framework of analysis to investigate the interplay between these three types of financial flows. Relying on an unbalanced panel dataset comprising 125 countries, of which 37 are Least Developed Countries (LDCs), the empirical analysis uses the three stage least squares econometric approach and provides two important pieces of evidence: first, international trade openness is an important tool for driving financial flows for development, including government public revenue, development aid and FDI. As a result, it could contribute to mobilizing the substantial financial resources needed for development, including for the implementation of the SDGs. Second, there are strong interactions (complementarity and substitutability) between these three types of financing for development flows.

show abstract

Resource Dependence and Fiscal Effort in Sub-Saharan Africa

Cited by 44 publications

References 16 publications

Does expanding fiscal space lead to improved funding of the health sector in developing countries?: lessons from Kenya, Lagos State (Nigeria) and South Africa

Does expanding fiscal space lead to improved funding of the health sector in developing countries?: lessons from Kenya, Lagos State (Nigeria) and South Africa

Ahorro fiscal precautorio en países intensivos en recursos naturales

Does Trade Openness Contribute to Driving Financing Flows for Development?

Contact Info

Product

Resources

About