EconPapers    
Economics at your fingertips  
 

Working Paper 349 - Revisiting the Relationship between Trade Liberalization and Taxation

Rabah Arezki (), Alou Adessé Dama () and Grégoire Rota-Graziosi ()
Additional contact information
Grégoire Rota-Graziosi: CERDI, Université Clermont Auvergne, https://cerdi.uca.fr/

Working Paper Series from African Development Bank

Abstract: This paper explores the dynamic effects of trade liberalization on tax revenue using a worldwide panel dataset. Results point to statistically significant negative effect of liberalization on (non- resource) tax revenues in the short term and no significant effect in the medium term. Liberalization also alter the tax structure tilting revenues toward indirect taxes away from direct ones. Economies which have implemented value added taxes prior to liberalization have mitigated its negative effects on tax revenues. The evidence is supportive of the complementarity role of state capacity to reap the benefits of liberalization.

Keywords: tax structure; openness; liberalization; natural resources JEL classification: H2; H87; F13 (search for similar items in EconPapers)
Date: 2021-08-09
New Economics Papers: this item is included in nep-int, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.afdb.org/sites/default/files/documents ... _and_taxation_2_.pdf (application/pdf)

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:adb:adbwps:2475

Access Statistics for this paper

More papers in Working Paper Series from African Development Bank African Development Bank Group, Avenue Joseph Anoma, 01 BP 1387 Abidjan 01, Côte d'Ivoire. Contact information at EDIRC.
Bibliographic data for series maintained by Adeleke Oluwole Salami ().

 
Page updated 2022-10-04
Handle: RePEc:adb:adbwps:2475