Tax capacity and growth in the Asia-Pacific region

Joao Jalles

Journal of the Asia Pacific Economy, 2021, vol. 26, issue 3, 527-551

Abstract: In this paper, we estimate short- and long-term tax buoyancy for 30 Asian-Pacific countries during 1980–2017 using recent panel techniques. Using Mean Group estimators, we found that the short-run buoyancy is statistically not different from one, while the long-run buoyancy is statistically larger than one. In 11 out of 30 countries, growth has improved fiscal sustainability over time, while in only 4 out of 30 countries the tax system has acted as a good automatic stabilizer. Results are robust to the estimation with alternative estimators, the inclusion of inflation and tax rates. We uncovered that buoyancies increased in magnitude and significance over time. Lastly, resorting to nonlinear estimations of short-run buoyancies contingent on the phase of the business cycle, we find that buoyancy is generally larger during recessions.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860.2020.1773598 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjapxx:v:26:y:2021:i:3:p:527-551

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860.2020.1773598

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().