Trade Liberalization and Tax Revenue Performance in Uganda

Gaalya, Micah Samuel

doi:10.4236/me.2015.62021

Cited by 24 publications

(29 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The FGLS model has more persistent impact then GMM model as it leads to higher increments for a given increase in trade openness. The result is consistent with (Addison and Levin, 2006); (Gaalya, 2015), (Gaalya et al, 2017), (Keen and Alejandro, 2004), (Rodrik, 1998).…”

Section: Dependent Variable: Lntrsupporting

confidence: 88%

“…Thus, the cumulative effect is that exchange rate appreciation leads to decrease in tax revenue of the region. The OER is statistically significant at 1 and 10% for FGLS and GMM models, respectively (Gaalya, 2015). Holding other things constant, for FGLS model a 1% growth in OER leads to 0.0226% decrease in growth of tax revenue as a ratio of GDP whereas for GMM model a 1% growth in OER leads to 0.236% decrease in growth of tax revenue.…”

Section: Dependent Variable: Lntrmentioning

confidence: 87%

“…Thus, it is conceivable to see that it has positive impact on the tax revenue of East African countries. This further proof that there is a complementarity role between foreign aid and tax revenue in place on being substitutable (Gaalya, 2015;Morrissey and Clist, 2010;Khan and Hoshino, 1992;Morrissey and Clist, 2010;Ouattara, 2006). Some other scholars argued that the share is declining from time to time depending on the commitment of 28 donors (Todaro, 2000) and it is not dependable and sustainable source of finance (United Nations, 2010); (Weeks, 2010), (Aniket and Yiagadeesen, 2012).…”

Section: Dependent Variable: Lntrmentioning

confidence: 94%

See 2 more Smart Citations

Determinants of tax revenue in East African countries: An application of multivariate panel data cointegration analysis

Terefe¹,

Teera²

2018

J. Econ. Int. Finance

View full text Add to dashboard Cite

Domestic revenue mobilization has received growing attention in recent years as it has crucial national and international dimensions for sub-Saharan African (SSA) and East African countries. In most countries, tax has not increased with increasing development expenditures. In place, the share of tax revenue to gross domestic product (GDP) is declining and countries constantly rely on foreign capital inflow as a major source of the government budget. Thus, equally tax revenue is key for economic development, the study thought to empirically examine the key determinants of tax revenue in East African countries using a novel dataset ranging from 1992 to 2015 by employing panel data cointegration approach. Panel unit root test of stationarity based on the LLC, IPS and ADF test of stationarity shows that all variables are cointegrated of order one, I(1), except the variable inflation which is stationary at level. The model estimation was done using the FGLS and the dynamic panel data GMM model. The long run estimated equation from the FGLS results indicates that per capita GDP, foreign aid, trade openness, share of agriculture, share of industry and share of services have positive contribution for tax revenue of East African countries over the study period. On the other hand, urbanization, official exchange rate and rate of inflation have negative impact on the tax revenue to GDP ratio of the region. From the short run, PVECM one period lagged tax revenue and urbanization has negative impact on the current period tax revenue while two period lagged urbanization and official exchange rate has positive impact. Thus, the robust result of the study calls for an indication that tax revenue increases under stable macroeconomic environment. Hence, East African countries should therefore better pursue economic policies that at least reveal low inflation rate and favorable trade policies. Moreover, the countries are required to set prudent macroeconomic policy environment which create economic integrations among different sectors, mobilizes domestic resource and improve external trade policies to make each country's growth sustainable on the basis of domestic resource mobilizations. The cumulative effects lead to improved tax revenue collection of the region.

show abstract

Section: Dependent Variable: Lntrsupporting

confidence: 88%

Section: Dependent Variable: Lntrmentioning

confidence: 87%

Section: Dependent Variable: Lntrmentioning

confidence: 94%

See 1 more Smart Citation

Determinants of tax revenue in East African countries: An application of multivariate panel data cointegration analysis

Terefe¹,

Teera²

2018

J. Econ. Int. Finance

View full text Add to dashboard Cite

show abstract

“…Nevertheless, the effect of trade liberalization on tax revenue generation may be ambiguous. In fact, trade liberalization, particularly a reduction of import tariffs, could lead to revenue reduction (Tupy, 2005 andGaalya, 2015). This leads to an argument whether trade liberalization is a potential source of tax revenue losses, especially for low income countries which have high dependency on international trade revenue.…”

Section: Literature Reviewmentioning

confidence: 99%

Corruption, governance and tax revenues in Africa

Epaphra¹,

Massawe²

2017

BEH

View full text Add to dashboard Cite

In this paper we analyze the effects of institutional variables (corruption and governance), structural variables (per capita income, trade openness, inflation and share of agriculture in GDP), and policy variables (tax rate and tariff rate) on total tax revenues, direct taxes, indirect taxes and trade taxes using panel data set for 30 African countries over the 1996-2016 period. All estimates are based on fixed effects (FE) and random effects (RE) models. Using Hausman test, RE is earmarked to be the more preferred model in this paper. The RE regression results show that corruption and governance are two main determinants of tax revenues in Africa. While corruption has a significant negative effect on tax revenues, good governance measured in terms of government effectiveness, regulatory quality, rule of law and voice and accountability tends to raise tax revenue generation and in particular, indirect taxes. In the same vein, governance in form of political stability tends to have a very significant effect on direct taxes and international trade taxes. The basic intuition behind these results is that higher institutional capacity and lower corruption enhance tax revenue generation in the economy. Intriguingly, empirical results show that tariff rates tend to have a strong negative effect on total tax revenue but at the same time they have a strong positive effect on trade tax revenue. Moreover, trade openness tends to have a strong positive relationship with tax revenue. Overall, results suggest that to raise more tax revenue, governments should reduce corruption, improve tax and customs administration and raise revenues from tax categories that are less susceptible to corruption. They should as well enhance trade openness.

show abstract

“…Typically this is true for developing and least-developed countries, notably in Africa. See for example [Kabbashi, 2005;Pupongsak, 2009;Cottarelli, 2011;Mushtaq et al, 2012;Nwosa et al, 2012;Gaalya, 2015] etc.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade Freedom and Revenue from Trade Taxes: a Cross-Country Analysis

Sokolovska¹

2016

Vestnik of SPbSU. Series 5. Economics

View full text Add to dashboard Cite

Trade liberalization as consequence of gradual abolition of tariff and non-tariff barriers generally leads to the decrease in government tax revenue. In order to estimate the relationship between trade freedom level and revenue from trade taxes we used the data for 104 countries worldwide for 2012. For further analysis we divide countries into two groups according to their income level as specifi ed in the World Bank classifi cation. Also, we investigated the dependence between revenue from taxes on international trade and trade freedom in resource abundant countries. We fi nd a signifi cant negative correlation between trade freedom and revenue from international trade taxes in low-income and lower-middle-income economies which allowed us to make conclusions about economic policy of countries at diff erent stages of trade liberalization. Либерализация внешней торговли как следствие постепенной отмены тарифных и нета-рифных барьеров, в целом ведет к сокращению налоговых доходов государства. Для оценки взаимосвязи между уровнем свободы торговли и дохода от внешнеторговых налогов в статье были использованы данные по 104 странам мира за 2012 г. С целью дальнейшего анализа рас-сматриваемые страны были распределены на две группы в зависимости от их уровня дохода согласно классификации Всемирного банка. Также анализируется взаимосвязь между уров-нем свободы торговли и доходом от внешнеторговых налогов для стран, богатых природными МИРОВАЯ ЭКОНОМИКАOlena SOKOLOVSKA -PhD, Chief Researcher, Research Institute of Fiscal Policy, National University of State Fiscal Service of Ukraine, 31, Universystetska str., Irpin, 08201, Ukraine; Institute of Industrial Economics of National Academy of Sciences of Ukraine, 26, P. Myrnogo str.; 01011, Kyiv; elena.lukyanenko@gmail.com Елена Васильевна СОКОЛОВСКАЯ -кандидат экономических наук, ведущий научный со-трудник, НИИ фискальной политики Государственной фискальной службы Украины, Националь-ный университет государственной фискальной службы Украины, 08201, Ирпень, Университет-ская ул., 31; Институт экономики промышленности НАН Украины, 01011, Киев, ул. П. Мирного, 26; elena.lukyanenko@gmail.com © Санкт-Петербургский государственный университет, 2016 Вестник СПбГУ. Сер. 5. Экономика. 2016. Вып. 2 53 ресурсами. Результат показал значимую отрицательную корреляцию между уровнем свободы торговли и доходом от внешнеторговых налогов для стран с низкими доходами и доходами ниже средних, что позволило сделать выводы об экономической политике стран на различных этапах либерализации внешней торговли. Библиогр. 26 назв. Табл. 2. Ил. 4.Ключевые слова: внешняя торговля, налоги на внешнюю торговлю, налоговый доход, свобо-да торговли, развивающиеся страны, страны, богатые природными ресурсами.

show abstract

Trade Liberalization and Tax Revenue Performance in Uganda

Cited by 24 publications

References 21 publications

Determinants of tax revenue in East African countries: An application of multivariate panel data cointegration analysis

Determinants of tax revenue in East African countries: An application of multivariate panel data cointegration analysis

Corruption, governance and tax revenues in Africa

Trade Freedom and Revenue from Trade Taxes: a Cross-Country Analysis

Contact Info

Product

Resources

About