dc.contributor.author | McNabb, Kyle | |
dc.contributor.author | LeMay-Boucher, Philippe | |
dc.date.accessioned | 2016-03-23T14:25:29Z | |
dc.date.available | 2016-03-23T14:25:29Z | |
dc.date.issued | 2014-09 | |
dc.identifier.citation | McNabb, K. and LeMay-Boucher, P. (2014) Tax Structures, Economic Growth and Development. ICTD Working Paper 22. Brighton: IDS. | en |
dc.identifier.isbn | 978-1-78118-175-1 | |
dc.identifier.uri | https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/10253 | |
dc.description | tax structure; fiscal policy; economic growth; development. | en |
dc.description.abstract | This paper investigates the relationship between tax structures and economic growth in a
panel of developed and developing countries. In order to raise revenue, low-income
countries have historically relied more heavily on international trade taxes, whilst richer
nations employ comparatively more consumption and income taxes. Using the new
Government Revenue Dataset (GRD) from the International Centre for Tax and Development
(ICTD), we consider the effects of revenue-neutral changes in tax structure on economic
growth for a panel of over 100 countries with data covering the period 1980-2010. Results
from the Common Correlated Effects Mean Group (CMG) estimator (Pesaran 2006) find that
increases in income taxes (specifically personal income taxes) offset by reductions in trade
or consumption taxes have had a negative impact on GDP growth rates. We also highlight
the fact that trade liberalisation has not had any discernible positive effects on economic
growth. Revenue-neutral increases in personal income taxes are found to be particularly
harmful in middle- and low-income countries. Taken alongside the results of, for example,
Baunsgaard and Keen (2010), this is a reminder of the difficulties of tax reform for developing countries. | en |
dc.description.sponsorship | DfID, NORAD | en |
dc.language.iso | en | en |
dc.publisher | Institute of Development Studies | en |
dc.relation.ispartofseries | ICTD Working Paper;22 | |
dc.rights | Tax Structures, Economic Growth and Development
Kyle McNabb and Philippe LeMay-Boucher
ICTD Working Paper 22
First published by the Institute of Development Studies in September 2014
© Institute of Development Studies 2014
ISBN: 978-1-78118-175-1
A catalogue record for this publication is available from the British Library.
All rights reserved. Reproduction, copy, transmission, or translation of any part of this publication may
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This publication is copyright, but may be reproduced by any method without fee for teaching or nonprofit purposes, but not for
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Available from:
The International Centre for Tax and Development
at the Institute of Development Studies,
Brighton BN1 9RE, UK
Tel: +44 (0) 1273 606261 Fax: +44 (0) 1273 621202
E-mail: info@ictd.ac.uk
Web: www.ictd/en/publications | en |
dc.rights.uri | http://www.ids.ac.uk/files/dmfile/IDSOpenDocsStandardTermsOfUse.pdf | en |
dc.subject | Economic Development | en |
dc.title | Tax Structures, Economic Growth and Development | en |
dc.type | IDS Working Paper | en |
dc.rights.holder | Institute of Development Studies | en |
dc.identifier.externaluri | http://www.ictd.ac/ju-download/2-working-papers/15-tax-structures-economic-growth-and-development | |