How Does Inclusive Growth Boost Tax Revenue Mobilization?

Jean-Louis Combes and Rasmane Ouedraogo ()

No 201605, Working Papers from CERDI

Abstract: Despite high economic growth in the last decades, many developing countries remain into poverty, income inequality and unemployment of young people, which have led some countries to adopt inclusive growth strategies. In this paper, we show how inclusive growth can boost tax revenue mobilization in developing countries. Effective public policies, improving social cohesion are fundamental to meet citizens’ aspirations and therefore incite them to comply with taxes. To this end, this study uses GMM techniques to deal with endogeneity issue and spans 55 developing countries over the period of 1995-2010. We find that inclusive growth has positive effect on tax revenue mobilization. This finding is robust to various aspects of inclusive growth measurements and additional controls.

Keywords: Inclusive growth; Taxes revenue; Inequality; Employment (search for similar items in EconPapers)
JEL-codes: D63 F43 H20 O11 (search for similar items in EconPapers)
Pages: 31
Date: 2016-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: How Does Inclusive Growth Boost Tax Revenue Mobilization? (2016)
Working Paper: How Does Inclusive Growth Boost Tax Revenue Mobilization? (2016)
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