Tax revenue performance and vulnerability in developing countries

Morrissey, Oliver; Haldenwang, Christian von; Schiller, Armin von; Ivanyna, Maksym; Bordon, Ingo

Abstract

This paper addresses vulnerability of revenue to external shocks using export composition to capture economic structure and differentiating countries according to income levels, resource endowments and political regimes. This gives a richer characterization than previous studies. Lower income countries are vulnerable to shocks, especially in terms of trade (associated with the greatest revenue loss): democratic regimes seem to be less vulnerable to revenue losses due to shocks than non-democracies whereas revenue in resource rich is more vulnerable to shocks (except natural disasters) than non-resource rich countries. We find a negative relationship between manufacturing exports and revenue in lower income countries.

Citation

Morrissey, O., Haldenwang, C. V., Schiller, A. V., Ivanyna, M., & Bordon, I. (2016). Tax revenue performance and vulnerability in developing countries. Journal of Development Studies, 52(12), 1689-1703. https://doi.org/10.1080/00220388.2016.1153071

• Journal Article Type: Article
• Acceptance Date: Apr 1, 2016
• Online Publication Date: May 12, 2016
• Publication Date: Dec 1, 2016
• Deposit Date: Sep 11, 2015
• Publicly Available Date: May 12, 2016
• Journal: Journal of Development Studies
• Print ISSN: 0022-0388
• Electronic ISSN: 1743-9140
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 52
• Issue: 12
• Pages: 1689-1703
• DOI: https://doi.org/10.1080/00220388.2016.1153071
• Public URL: https://nottingham-repository.worktribe.com/output/825669
• Publisher URL: http://www.tandfonline.com/doi/full/10.1080/00220388.2016.1153071
• Additional Information: Peer Review Statement: The publishing and review policy for this title is described in its Aims & Scope.; Aim & Scope: http://www.tandfonline.com/action/journalInformation?show=aimsScope&journalCode=fjds20