Tax reform and public debt instability in developing countries: The trade openness and public revenue instability channels

Sèna Kimm Gnangnon

Economic Analysis and Policy, 2021, vol. 69, issue C, 54-67

Abstract: This article investigates the effect of tax reform – which entails a convergence of developing countries’ tax structure towards that of developed countries – on public debt instability in developing countries. The empirical analysis has shown that a greater extent of tax reform reduces the instability of public debt, including when countries experience lower public revenue instability or when they open-up their economies to international trade. These findings have important policy implications.

Keywords: Tax reform; Public debt instability; Public revenue instability; Trade openness; Developing countries (search for similar items in EconPapers)
JEL-codes: F13 H10 H20 H63 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592620304409
Full text for ScienceDirect subscribers only

Related works:
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:eee:ecanpo:v:69:y:2021:i:c:p:54-67

DOI: 10.1016/j.eap.2020.11.005

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().