Natural resource endowments and the domestic revenue effort

Fabian Bornhorst (), Sanjeev Gupta and John Thornton

European Journal of Political Economy, 2009, vol. 25, issue 4, 439-446

Abstract: We examine whether there is evidence of an offset between government revenues from hydrocarbon (oil and gas) related activities and revenues from other domestic sources in a panel of 30 hydrocarbon producing countries. Our main finding is that there is an offset of about 20%, which is robust to the inclusion of control variables, the exclusion of outliers, and alternate estimation methodologies. While the impact of the offset on long-term development prospects is not clear, there is a risk of significant adjustment costs in moving to a higher level of domestic taxation once natural resources are depleted.

Keywords: Hydrocarbon; revenues; Domestic; revenue; effort (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (122)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:25:y:2009:i:4:p:439-446

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