Revenue Mobilization in Sub-Saharan Africa: Challenges from Globalization

48 Pages Posted: 4 Aug 2009

See all articles by Mario Mansour

Mario Mansour

International Monetary Fund (IMF) - Fiscal Affairs Department

Michael Keen

International Monetary Fund (IMF) - Fiscal Affairs Department; CESifo (Center for Economic Studies and Ifo Institute); Institute for Fiscal Studies (IFS)

Date Written: July 2009

Abstract

This paper evaluates the nature and extent of, and possible responses to, two of the central challenges that globalization poses for revenue mobilization in Sub-Saharan Africa (SSA): from corporate tax competition, and from trade liberalization. It does so using a new dataset with features needed to meaningfully address these issues: a distinction between resourcerelated and other revenues, and a disentangling of tariff from commodity tax revenue. Countries' experiences vary quite widely, nonresource revenues have been essentially stagnant. Corporate tax revenues have held up, despite a reduction in rates and evidence of substantial base-narrowing-something of a puzzle-and trade tax revenue reductions have been largely offset by other measures. Options for dealing with the continuation and intensification of the challenges, which the present crisis is likely to accelerate-including through regional cooperation-are discussed.

Keywords: Corporate taxes, Cross country analysis, Globalization, International trade, Revenue mobilization, Sub-Saharan Africa, Tax incentives, Tax reforms, Tax revenues, Trade liberalization, Trade policy

Suggested Citation

Mansour, Mario and Keen, Michael, Revenue Mobilization in Sub-Saharan Africa: Challenges from Globalization (July 2009). IMF Working Papers, Vol. , pp. 1-47, 2009. Available at SSRN: https://ssrn.com/abstract=1442259

Mario Mansour (Contact Author)

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

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

Michael Keen

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

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

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Institute for Fiscal Studies (IFS)

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

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