Globalisation and Developing Countries - a Shrinking Tax Base?

Main author: Aizenman, Joshua
Other authors: Jinjarak, Yothin
Format: Journal Article           
Online access: Click here to view record


Summary: This paper evaluates the impact of globalisation on tax bases of countries at varying stages of development. We see globalisation as a process that induces countries to embrace greater trade and financial integration. This in turn should shift their tax revenue from 'easy to collect' taxes (tariffs and seigniorage) towards 'hard to collect' taxes (value added and income taxes). We find that trade and financial openness have a positive association with the 'hard to collect' taxes, and a negative association with the easy to collect taxes.
Other authors: Jinjarak, Yothin
Language: English
Published: Taylor and Francis 2009