Political Competition and Tax Revenues in Developing Countries. (13th March 2018)

• Record Type: Journal Article
• Authors: Yogo, Urbain T.; Ngo Njib, Martine M.
• Other Names: Addison Tony guestEditor.; Niño‐Zarazúa Miguel guestEditor.; Pirttilä Jukka guestEditor.
• Is Part Of: Journal of international development. Volume 30:Number 2(2018:Mar.)
• Page Start: 302
• Page End: 322
• Publication Date: 2018-03-13
• Subjects: level of tax revenues -- political competition -- volatility of tax revenues; Economic development projects -- Developing countries -- Periodicals; Developing countries -- Economic policy -- Periodicals; Developing countries -- Foreign economic relations -- Periodicals; Economic development -- Periodicals; 330.91724
• DOI: 10.1002/jid.3349
• Languages: English
• ISSNs: 0954-1748

Abstract

Abstract: Building on the literature of the political economy of taxation, this article explores the relationship between political competition and tax revenues using a sample of 89 developing countries from 1988 to 2010. Owing to the inertia of tax variables, we estimate a dynamic panel data model using the Blundell and Bond two‐step System‐general method of moments. The analysis led to the following results: political competition positively and significantly affects total tax revenues. However, this general pattern slightly differs across the type of taxes; and the net effect of political competition on tax revenues is negative for countries that have adopted fiscal rules. © 2018 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd.