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Resource Blessing, Revenue Curse? Domestic Revenue Effort in Resource-Rich Countries
Author:
Ernesto Crivelli
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Mr. Sanjeev Gupta
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Series:
IMF Working Papers
Volume/Issue:
Volume 2014: Issue 005
Language:
English
Publication Date:
14 Jan 2014
DOI:
https://doi.org/10.5089/9781484351178.001
ISBN:
9781484351178
ISSN:
1018-5941
Pages:
29
Keywords:
WP; resource revenue; resource; taxation; GDP; VAT
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper uses a newly constructed revenue dataset of 35 resource-rich countries for the period 1992-2009 to analyze the impact of expanding resource revenues on different types of domestic (non resource) tax revenues. Overall, we find a statistically significant negative relationship between resource revenues and total domestic (non resource) revenues, including for the major tax components. For each additional percentage point of GDP in resource revenues, there is a reduction in domestic (non resource) revenues of about 0.3 percentage points of GDP. We find this primarily occurs through reduced effort on taxes on goods and services—in particular, the VAT— followed by a smaller negative impact on corporate income and trade taxes.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund