Study on the Vulnerability and Resilience Factors of Tax Revenues in Developing Countries. Study funded by the European Commission

Haldenwang, Christian von; Morrissey, Oliver; Ivanyna, Maksym; Bordon, Ingo G.; Schiller, Armin von

doi:10.2139/ssrn.2366285

Cited by 10 publications

(10 citation statements)

References 27 publications

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“…Fixed effects estimation with robust standard errors. ***p < 0.10, **p < 0.05, *p < 0.01 (von Haldenwang et al, 2013), indicating that for democratic countries, the endowment with natural resources does not have to be a curse. Regarding the effect of the Polity score on tax ratio, the sign is positive but the effect is statistically insignificant.…”

Section: Results Of the Empirical Analysismentioning

confidence: 99%

“…Natural resources have a significant positive effect on the tax ratio in democratic countries. This seems to corroborate results presented in recent studies (von Haldenwang et al ., ), indicating that for democratic countries, the endowment with natural resources does not have to be a curse. Regarding the effect of the Polity score on tax ratio, the sign is positive but the effect is statistically insignificant.…”

Section: Results Of the Empirical Analysismentioning

confidence: 99%

“…On the other hand, the rents obtained from natural resource depletion may act as a disincentive to other productive activities and to taxation (the ‘resource curse’, Collier & Hoeffler, ; McGuirk, ). Also, if the extractive sector is dominated by state‐owned enterprises, resource rents are often channelled to the government through non‐tax mechanisms (von Haldenwang et al ., ).The second category of variables refers to international factors, such as ratio of trade (exports and imports) to GDP. Trade is assumed to be positively related to tax ratio, as it is comparatively easy to tax exports and imports Another variable in this category refers to ODA flows.…”

Section: Econometric Designmentioning

confidence: 97%

“…9 On the other hand, the rents obtained from natural resource depletion may act as a disincentive to other productive activities and to taxation (the 'resource curse', Collier & Hoeffler, 2009;McGuirk, 2013). Also, if the extractive sector is dominated by state-owned enterprises, resource rents are often channelled to the government through non-tax mechanisms (von Haldenwang et al, 2013).…”

Section: Econometric Designmentioning

confidence: 99%

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Do Democracies Tax More? Political Regime Type and Taxation

Garcia

Haldenwang

2015

J of Intl Development

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A growing body of literature suggests that political regime type matters in determining taxation. However, research on the relationship of political regimes to taxation yields mixed results. To what extent does the democratic or authoritarian character of the polity impact on the level of taxation? The paper investigates the relationship between political regimes and tax-to-gross domestic product ratio, using a panel dataset of 131 countries and covering the period 1990-2008. Findings suggest that the character of the polity affects taxation, but there is no linear trend in favour of democracy. Rather, the results indicate a U-shaped relationship between polity and tax ratio.

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Section: Results Of the Empirical Analysismentioning

confidence: 99%

Section: Results Of the Empirical Analysismentioning

confidence: 99%

Section: Econometric Designmentioning

confidence: 97%

Section: Econometric Designmentioning

confidence: 99%

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Do Democracies Tax More? Political Regime Type and Taxation

Garcia

Haldenwang

2015

J of Intl Development

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“…However, we find no evidence of shocks having nonlinear effects on revenue. See von Haldenwang et al (2013) for more details. 6 In fact, our results demonstrate that β is, on average, close to 0 in advanced economies, whose fiscal policies are usually considered to be more consistent with the objective of macroeconomic stability than the policies of poorer countries.…”

Section: Von Haldenwang and M Ivanynamentioning

confidence: 99%

Does the Political Resource Curse Affect Public Finance? The Vulnerability of Tax Revenue in Resource‐Dependent Countries

Haldenwang

Ivanyna²

2018

J of Intl Development

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This paper explores the extent to which government revenue is affected by external shocks and whether these effects are different for resource-dependent (RD) as compared with non-RD countries. We are particularly interested in the fate of poorer countries, as we assume they will find it more difficult to implement the policies needed to offset the effect of shocks. Based on data from the International Centre for Taxation and Development Government Revenue Dataset for 1980-2010, we measure the elasticity of tax revenue with respect to terms-of-trade shocks. We find that revenue in RD countries is more vulnerable to such shocks. It is above all the richer countries that appear to be adversely affected, compared with their non-RD counterparts. In contrast, the difference between RD and non-RD countries is less pronounced in the group of poorer countries. We also find that resource-dependent countries became less vulnerable in the 2000s as compared with previous decades. At the same time, political regime type does not seem to matter for the vulnerability of government revenue in these countries.

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Internet, Participation in International Trade, and Tax Revenue Instability

Gnangnon

2022

Journal of Economic Integration

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This study investigates the effect of the Internet on tax revenue instability (TRI), notably through the international trade channel. It used a sample of 142 countries over the period 1995-2017 and relied primarily on the two-step system generalized method of moments estimator. The findings indicate that greater access to the Internet negatively affects TRI, and this effect works through the trade openness avenue. Especially, countries enjoy a higher negative effect of the Internet on TRI as they experience a greater trade openness. Moreover, Internet access reduces TRI in countries that have experienced a greater extent of tax reform and a greater export product concentration. Therefore, these findings add to the potential benefits of Internet adoption by showing that it could also help stabilize tax revenue, particularly through countries’ participation in international trade.

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Study on the Vulnerability and Resilience Factors of Tax Revenues in Developing Countries. Study funded by the European Commission

Cited by 10 publications

References 27 publications

Do Democracies Tax More? Political Regime Type and Taxation

Do Democracies Tax More? Political Regime Type and Taxation

Does the Political Resource Curse Affect Public Finance? The Vulnerability of Tax Revenue in Resource‐Dependent Countries

Internet, Participation in International Trade, and Tax Revenue Instability

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