Determinants of Tax Revenue Efforts in Developing Countries

July 1, 2007

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Format: Chicago

Abhijit Sen Gupta. Determinants of Tax Revenue Efforts in Developing Countries, (USA: International Monetary Fund, 2007) accessed September 18, 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 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.

Subject: Agricultural sector, Consumption taxes, Fiscal stabilization, Foreign aid, Revenue administration

Keywords: Effort index, Revenue performance, Tax revenue, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/184
Stock No:

WPIEA2007184
ISBN:

9781451867480
ISSN:

1018-5941

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