Working Paper: NBER ID: w21755
Authors: Joshua Aizenman; Yothin Jinjarak; Jungsuk Kim; Donghyun Park
Abstract: We take stock of and compare tax revenue trends in Asia and Latin America. The tax revenues to GDP ratios increased significantly in both regions in the 2000s, although they remain visibly below European levels. Our analysis portrays a complex picture of the tax collection challenges facing developing countries. Overall, there remains sizable heterogeneity in the revenue performance of developing countries, and across regions. While progress has been made, the gap between the advanced economies and developing countries suggests ample room for future fiscal developments, and for more disaggregated studies of the tax mobilization challenges facing developing countries in the aftermath of the global financial crisis.
Keywords: Tax revenue; Asia; Latin America; Economic growth; Public finance
JEL Codes: F6
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Government Effectiveness (H11) | Tax Revenue (H29) |
| Openness to Trade (F10) | Tax Revenue (H29) |
| Population Growth (J11) | Tax Revenue (H29) |
| Manufacturing Value Added (L60) | Tax Revenue (H29) |