Determinants of Tax Revenue Efforts in Developing Countries
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Summary:
This paper contributes to the existing empirical literature on the principal determinants of tax revenue performance across developing countries by using a broad dataset and accounting for some econometric issues that were previously ignored. The results confirm that structural factors such as per capita GDP, agriculture share in GDP, trade openness and foreign aid significantly affect revenue performance of an economy. Other factors include corruption, political stability, share of direct and indirect taxes etc. The paper also makes use of a revenue performance index, and finds that while several Sub Saharan African countries are performing well above their potential, some Latin American economies fall short of their revenue potential.
Series:
Working Paper No. 2007/184
Subject:
Agricultural sector Consumption taxes Fiscal stabilization Foreign aid Revenue administration
English
Publication Date:
July 1, 2007
ISBN/ISSN:
9781451867480/1018-5941
Stock No:
WPIEA2007184
Pages:
39
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