Determinants of Tax Revenue Efforts in Developing Countries

41 Pages Posted: 23 Aug 2007

See all articles by Abhijit Sen Gupta

Abhijit Sen Gupta

Indian Council for Research on International Economic Relations (ICRIER)

Date Written: July 2007

Abstract

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.

Keywords: Tax revenues, Developing countries, Revenues, Taxes

Suggested Citation

Sen Gupta, Abhijit, Determinants of Tax Revenue Efforts in Developing Countries (July 2007). IMF Working Paper No. 07/184, Available at SSRN: https://ssrn.com/abstract=1007933

Abhijit Sen Gupta (Contact Author)

Indian Council for Research on International Economic Relations (ICRIER) ( email )

Core 6A, 4th Floor
India Habitat Centre, Lodhi Road
New Delhi, 110003
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,753
Abstract Views
4,563
rank
11,767
PlumX Metrics