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

12 Pages Posted: 12 Sep 2008

See all articles by Fabian Bornhorst

Fabian Bornhorst

International Monetary Fund (IMF)

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

John Thornton

International Monetary Fund (IMF)

Date Written: July 2008

Abstract

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.

Keywords: Hydrocarbons, Revenues, Oil revenues, Taxation, Governance, Corruption

Suggested Citation

Bornhorst, Fabian and Gupta, Sanjeev and Thornton, John, Natural Resource Endowments, Governance, and the Domestic Revenue Effort: Evidence from a Panel of Countries (July 2008). IMF Working Paper No. 08/170, Available at SSRN: https://ssrn.com/abstract=1266503 or http://dx.doi.org/10.2139/ssrn.1266503

Fabian Bornhorst (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

John Thornton

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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