Does Trade Liberalization Affects International Trade Tax Revenue? Evidence from Dynamic Panel Threshold Method
Mohammad Karimi,
Shivee Ranjanee Kaliappan,
Normaz Wana Ismail and
Hanny Hamzah
Economic Studies journal, 2016, issue 1, 75-87
Abstract:
This paper examines the relationship between trade liberalization and trade tax revenues applying an advanced dynamic panel threshold technique. The empirical analysis is based on a large panel-dataset including 103 developing countries for the period 1993-2012. The empirical finding results indicate that the relationship between trade liberalization and trade tax revenue is non-liner and also provide evidence of a Laffer effect. In particular, we find that additional trade liberalization has a negative impact on trade tax revenue, but this negative effect will disappear at the higher levels of trade liberalization. The results point to harness the benefits of trade liberalization without having worry a lot about its impact on trade tax revenues.
JEL-codes: F40 H20 H87 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.ceeol.com/search/article-detail?id=340713
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:bas:econst:y:2016:i:1:p:75-87
Access Statistics for this article
More articles in Economic Studies journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().