Investigating the fiscal resource curse: What's China got to do with it?

Daniel Chachu and Edward Nketiah-Amponsah ()

No wp-2020-85, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The term fiscal resource curse refers to countries' inability to raise taxes from a broad base in the presence of natural resources. We employ a novel instrumental variable strategy to estimate the causal effect of resource revenues on non-resource tax effort by exploiting the so-called 'China shock'. Since its 2001 accession to the World Trade Organization, China's non-renewable resource trade has driven up commodity prices, raising resource revenues among exporting countries.

Keywords: China; Infrastructure; Natural resources; Tax; Tax effort; Trade (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cna, nep-env and nep-int
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Citations: View citations in EconPapers (1)

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