CORRUPTION AND THE COMPOSITION OF TAX REVENUE IN MIDDLE EAST AND AFRICAN ECONOMIES1 |
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| Authors: | John Thornton |
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| Institution: | Middle East and Central Asia Department, International Monetary Fund, USA |
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| Abstract: | Regression results from a panel of 53 Middle East and African economies suggest that corruption has a quite large negative and statistically significant impact on tax revenues, mainly reflecting the impact of corruption on tax collections from social security, and taxes on domestic goods and services and international trade transactions. Policy changes to boost tax revenues might usefully focus on changes in direct taxes and efforts to combat corruption in tax collections should focus on indirect taxes. |
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| Keywords: | D73 E62 corruption composition of tax revenues panel regression |
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