Impact of export upgrading on tax revenue in developing and high-income countries* |
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Authors: | Sèna Kimm Gnangnon Jean-François Brun |
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Institution: | 1. World Trade Organization, Geneva, Switzerland;2. CERDI-Université Clermont Auvergne, Clermont-Ferrand, France |
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Abstract: | Empirical studies usually analyse the relationship between an economy’s trade sector and tax revenue in developing countries through the effect of trade liberalization on tax revenue. This paper takes a different angle by examining the impact of export upgrading strategies (export diversification and improvement in export quality) on non-resource tax revenue. The panel data-set covers a sample of 172 countries, including both developed and developing countries, spanning the period 1980–2010. The analysis is conducted both on the entire sample and sub-samples. The findings indicate that export product upgrading exerts a positive and significant effect on non-resource tax revenue, including for the sub-samples considered, with the exception of low-income countries for which we observe mixed results. Moreover, countries which upgrade their export products in a context of trade openness consistently experience higher non-resource tax revenue, both in the short and long term. |
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Keywords: | F4 H2 O24 |
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