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Natural resource endowments and the domestic revenue effort

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Author Info

  • Bornhorst, Fabian
  • Gupta, Sanjeev
  • Thornton, John

Abstract

We examine whether there is evidence of an offset between government revenues from hydrocarbon (oil and gas) related activities and revenues from other domestic sources in a panel of 30 hydrocarbon producing countries. Our main finding is that there is an offset of about 20%, which is robust to the inclusion of control variables, the exclusion of outliers, and alternate estimation methodologies. While the impact of the offset on long-term development prospects is not clear, there is a risk of significant adjustment costs in moving to a higher level of domestic taxation once natural resources are depleted.

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File URL: http://www.sciencedirect.com/science/article/B6V97-4VJ01BR-2/2/24582ac26b190bcf0e6953e9ed50977c
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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 25 (2009)
Issue (Month): 4 (December)
Pages: 439-446

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Handle: RePEc:eee:poleco:v:25:y:2009:i:4:p:439-446

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Web page: http://www.elsevier.com/locate/inca/505544

Related research

Keywords: Hydrocarbon revenues Domestic revenue effort;

References

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Citations

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Cited by:
  1. Frederick van der Ploeg & Anthony J Venables, 2012. "Natural Resource Wealth: The challenge of managing a windfall," OxCarre Working Papers 075, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  2. Helene Ehrhart, 2012. "Assessing the relationship between democracy and domestic taxes in developing countries," Economics Bulletin, AccessEcon, vol. 32(1), pages 551-566.
  3. Mohammad Reza Farzanegan, 2014. "Can Oil-Rich Countries Encourage Entrepreneurship? ‘Yes’, ‘No’ but not ‘Perhaps’," MAGKS Papers on Economics 201406, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  4. Alexander James, 2014. "US State Fiscal Policy and Natural Resources," OxCarre Working Papers 126, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  5. Bjorvatn, Kjetil & Farzanegan, Mohammad Reza & Schneider, Friedrich, 2012. "Resource Curse and Power Balance: Evidence from Oil-Rich Countries," World Development, Elsevier, vol. 40(7), pages 1308-1316.
  6. Torfinn Harding & Frederick van der Ploeg, 2012. "Official forecasts and management of oil windfalls," Discussion Papers 676, Research Department of Statistics Norway.
  7. Al-Ubaydli, Omar, 2012. "Natural resources and the tradeoff between authoritarianism and development," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 137-152.
  8. Janus, Thorsten, 2012. "Natural resource extraction and civil conflict," Journal of Development Economics, Elsevier, vol. 97(1), pages 24-31.
  9. Yener Altunbas & John Thornton, 2010. "Does Paying Taxes Improve the Quality of Governance? Cross-Country Evidence," Working Papers 10006, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
  10. Hart, Jason, 2010. "Revenue Funds Counteract The Determinants Of Dutch Disease: Lessons For Western Australia," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59084, Australian Agricultural and Resource Economics Society.
  11. Alexander James, 2013. "US State Fiscal Policy and Natural Resources," Economics Series Working Papers OxCarre Research Paper 12, University of Oxford, Department of Economics.
  12. Alun H. Thomas & Juan P. Treviño, 2013. "Resource Dependence and Fiscal Effort in Sub-Saharan Africa," IMF Working Papers 13/188, International Monetary Fund.
  13. Vandycke, Nancy, 2013. "Natural resources, physical capital and institutions : evidence from Eurasia," Policy Research Working Paper Series 6586, The World Bank.
  14. Samad Bashirli & Ilkin Sabiroglu, 2013. "Testing Wagner’s Law in an Oil-Exporting Economy: the Case of Azerbaijan," Transition Studies Review, Springer, vol. 20(3), pages 295-307, November.
  15. Mohammad Reza Farzanegan, 2012. "Resource Wealth and Entrepreneurship: A Blessing or a Curse?," MAGKS Papers on Economics 201224, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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