Externe Publikationen

Tax revenue performance and vulnerability in developing countries

Morrissey, Oliver / Christian von Haldenwang / Armin von Schiller / Maksym Ivanyna / Ingo Bordon
Externe Publikationen (2016)

in: The Journal of Development Studies 52 (12), 1689-1703

DOI: https://doi.org/10.1080/00220388.2016.1153071
Volltext/Document

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 characterisation 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 countries 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.