Resource Blessing, Revenue Curse? Domestic Revenue Effort in Resource-Rich Countries

January 14, 2014

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Ernesto Crivelli, and Sanjeev Gupta. Resource Blessing, Revenue Curse? Domestic Revenue Effort in Resource-Rich Countries, (USA: International Monetary Fund, 2014) accessed December 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper uses a newly constructed revenue dataset of 35 resource-rich countries for the period 1992-2009 to analyze the impact of expanding resource revenues on different types of domestic (non resource) tax revenues. Overall, we find a statistically significant negative relationship between resource revenues and total domestic (non resource) revenues, including for the major tax components. For each additional percentage point of GDP in resource revenues, there is a reduction in domestic (non resource) revenues of about 0.3 percentage points of GDP. We find this primarily occurs through reduced effort on taxes on goods and services—in particular, the VAT— followed by a smaller negative impact on corporate income and trade taxes.

Subject: Consumption taxes, Corporate income tax, Natural resources, Revenue administration, Value-added tax

Keywords: GDP, Resource, Resource revenue, Taxation, VAT, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/005
Stock No:

WPIEA2014005
ISBN:

9781484351178
ISSN:

1018-5941

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