Sovereign Rents and Quality of Tax Policy and Administration

Windfall revenues from foreign aid or natural resource exports can weaken governments' incentives to design or maintain efficient tax systems. Cross-country data for developing countries provide evidence for this hypothesis, using a World Bank indicator on "efficiency of revenue mobilizati...

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Main Author:	Knack, Stephen
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Fiscal Policy E620 Foreign Aid F350 Taxation, Subsidies, and Revenue: General H200 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Resource Booms Q330
Online Access:	http://hdl.handle.net/10986/4638

id	okr-10986-4638
recordtype	oai_dc
spelling	okr-10986-46382021-04-23T14:02:18Z Sovereign Rents and Quality of Tax Policy and Administration Knack, Stephen Fiscal Policy E620 Foreign Aid F350 Taxation, Subsidies, and Revenue: General H200 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Resource Booms Q330 Windfall revenues from foreign aid or natural resource exports can weaken governments' incentives to design or maintain efficient tax systems. Cross-country data for developing countries provide evidence for this hypothesis, using a World Bank indicator on "efficiency of revenue mobilization." Aid's negative effects on quality of tax systems are robust to correcting for potential reverse causality, to changes in the sample, and to alternative estimation methods. Revenues from natural resources are also associated with lower-quality tax systems, but results are somewhat sensitive to the choice of resource dependence indicators, and to a few extreme values in the data. Disaggregating by resource type, revenues from fuel exports are found to be more strongly associated than revenues from metals and ores exports with inefficient tax systems. 2012-03-30T07:28:58Z 2012-03-30T07:28:58Z 2009 Journal Article Journal of Comparative Economics 01475967 http://hdl.handle.net/10986/4638 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Fiscal Policy E620 Foreign Aid F350 Taxation, Subsidies, and Revenue: General H200 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Resource Booms Q330
spellingShingle	Fiscal Policy E620 Foreign Aid F350 Taxation, Subsidies, and Revenue: General H200 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Resource Booms Q330 Knack, Stephen Sovereign Rents and Quality of Tax Policy and Administration
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Windfall revenues from foreign aid or natural resource exports can weaken governments' incentives to design or maintain efficient tax systems. Cross-country data for developing countries provide evidence for this hypothesis, using a World Bank indicator on "efficiency of revenue mobilization." Aid's negative effects on quality of tax systems are robust to correcting for potential reverse causality, to changes in the sample, and to alternative estimation methods. Revenues from natural resources are also associated with lower-quality tax systems, but results are somewhat sensitive to the choice of resource dependence indicators, and to a few extreme values in the data. Disaggregating by resource type, revenues from fuel exports are found to be more strongly associated than revenues from metals and ores exports with inefficient tax systems.
format	Journal Article
author	Knack, Stephen
author_facet	Knack, Stephen
author_sort	Knack, Stephen
title	Sovereign Rents and Quality of Tax Policy and Administration
title_short	Sovereign Rents and Quality of Tax Policy and Administration
title_full	Sovereign Rents and Quality of Tax Policy and Administration
title_fullStr	Sovereign Rents and Quality of Tax Policy and Administration
title_full_unstemmed	Sovereign Rents and Quality of Tax Policy and Administration
title_sort	sovereign rents and quality of tax policy and administration
publishDate	2012
url	http://hdl.handle.net/10986/4638
_version_	1764392210727436288

Sovereign Rents and Quality of Tax Policy and Administration

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