Assessing the relationship between democracy and domestic taxes in developing countries - HAL-SHS - Sciences de l'Homme et de la Société Access content directly
Preprints, Working Papers, ... Year : 2011

Assessing the relationship between democracy and domestic taxes in developing countries

Abstract

To what extent differences across developing countries in their domestic tax mobilization can be explained, in addition to the traditional determinants, by political economy factors and particularly by the political regime? Using a panel of 66 developing countries over the period 1990-2005, this paper provides econometric evidence that democracy matters for achieving higher domestic tax revenues which are much needed to finance public goods. It is especially the level of constraints on the executive which is of importance to counter the government's propensity to cave in for special interests and to be insufficiently welfare minded. We found that high levels of democracy are specifically needed in natural resource rich countries to make natural resource rents contribute to higher domestic tax revenues and no longer be an impediment to a sustained tax system.
Fichier principal
Vignette du fichier
2009.30.pdf (270.95 Ko) Télécharger le fichier
Origin Files produced by the author(s)
Loading...

Dates and versions

halshs-00553607 , version 1 (07-01-2011)

Identifiers

  • HAL Id : halshs-00553607 , version 1

Cite

Hélène Ehrhart. Assessing the relationship between democracy and domestic taxes in developing countries. 2011. ⟨halshs-00553607⟩
479 View
1558 Download

Share

Gmail Mastodon Facebook X LinkedIn More