Natural Resource Endowments, Governance, and the Domestic Revenue Effort: Evidence from a Panel of Countries

By John Thornton, Fabian Bornhorst, Sanjeev Gupta

July 1, 2008

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John Thornton, Fabian Bornhorst, and Sanjeev Gupta. Natural Resource Endowments, Governance, and the Domestic Revenue Effort: Evidence from a Panel of Countries, (USA: International Monetary Fund, 2008) accessed November 21, 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

The recent development literature stresses that countries that receive large revenues from natural resource endowments typically raise less revenue from domestic taxation, and that this creates governance problems because the lower domestic tax effort reduces the incentive for the public scrutiny of government. Our results from a panel of 30 hydrocarbon producing countries indicate that the offset between hydrocarbon revenues and revenues from other domestic sources is about 20 percent but that it is invariant to governance indicators.

Subject: Agricultural sector, Corruption, Natural resources

Keywords: GDP, Hydrocarbon revenue, Revenue, WP

Publication Details

Pages:

10
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/170
Stock No:

WPIEA2008170
ISBN:

9781451870282
ISSN:

1018-5941

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