{
  "title": "Determinants of Tax Revenue Efforts in Developing Countries",
  "publication": "IMF Working Papers, July 1, 2007",
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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.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- 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.\n- The paper makes use of a revenue performance index to assess countries’ performance relative to potential."
    },
    {
      "heading": "Key empirical findings",
      "content": "- Structural factors that significantly affect revenue performance:\n  - per capita GDP\n  - agriculture share in GDP\n  - trade openness\n  - foreign aid\n- Other factors influencing revenue performance:\n  - corruption\n  - political stability\n  - share of direct and indirect taxes\n- Using the revenue performance index:\n  - several Sub Saharan African countries are performing well above their potential\n  - some Latin American economies fall short of their revenue potential"
    },
    {
      "heading": "Methodology and measures",
      "content": "- Employs a broad dataset covering developing countries.\n- Accounts for econometric issues previously ignored in the literature.\n- Develops and uses a revenue performance (effort) index to compare actual revenues with potential revenues."
    },
    {
      "heading": "Policy implications and recommendations (inferred from findings)",
      "content": "- Strengthening structural and institutional factors can improve revenue performance, including:\n  - policies that raise per capita GDP\n  - measures to manage the agriculture share in GDP and to harness trade openness\n  - consideration of the impact of foreign aid on domestic revenue mobilization\n  - anti-corruption and political-stability enhancing measures\n  - adjustments to the balance between direct and indirect taxes to improve revenue outcomes\n\n---\n\n Content in this bundle\n\n- 12. Revenue Performance Index\n  - 12. Revenue Performance Index (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 12. Revenue Performance Index (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/determinants-of-tax-revenue-efforts-in-developing-countries-21040"
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    "Authors: Abhijit Sen Gupta",
    "Published: July 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451867480.001",
    "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 paper makes use of a revenue performance index to assess countries’ performance relative to potential.",
    "Structural factors that significantly affect revenue performance:",
    "Other factors influencing revenue performance:",
    "Using the revenue performance index:",
    "Employs a broad dataset covering developing countries.",
    "Accounts for econometric issues previously ignored in the literature.",
    "Develops and uses a revenue performance (effort) index to compare actual revenues with potential revenues.",
    "Strengthening structural and institutional factors can improve revenue performance, including:",
    "**12. Revenue Performance Index**"
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