Remittances, Value Added Tax and Tax Revenue in Developing Countries

Christian Hubert Ebeke ()

No 201030, Working Papers from CERDI

Abstract: This paper examines the impact of international remittances on both the level and the instability of government tax revenue in receiving countries. It investigates in particular whether the presence of a value added tax (VAT) system increases the benefit of the inflows of remittances in terms of high and less volatile tax revenue ratio. This is supported by the fact that remittances are largely used for consumption purposes and contribute to smoothing private consumption. Using a large sample of developing countries observed over the period 1980-2006, and even after factoring in the endogeneity of remittances and VAT adoption, the results highlight that remittances significantly increase both the level and the stability of government tax revenue ratio in receiving countries that have adopted the VAT.

Keywords: Remittances; VAT; Tax revenue; Tax Revenue Instability (search for similar items in EconPapers)
JEL-codes: E32 F20 H20 O23 (search for similar items in EconPapers)
Pages: 26
Date: 2010
New Economics Papers: this item is included in nep-acc, nep-mig and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://publi.cerdi.org/ed/2010/2010.30.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://publi.cerdi.org/ed/2010/2010.30.pdf [301 Moved Permanently]--> https://publi.cerdi.org/ed/2010/2010.30.pdf)

Related works:
Working Paper: Remittances, Value Added Tax and Tax Revenue in Developing Countries (2011)
Working Paper: Remittances, Value Added Tax and Tax Revenue in Developing Countries (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:1208

Access Statistics for this paper

More papers in Working Papers from CERDI Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Mazenod ().