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Reassessing Tax Effort in Developing Countries: a Proposal of a Vulnerability-Adjusted Tax Effort Index (VATEI)

Author

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  • Djedje Hermann YOHOU

    (International Monetary Fund (IMF))

  • Michaël GOUJON

    (University of Auvergne)

Abstract

This paper describes the estimation of a new tax effort index for 120 developing countries over 1990-2012. Two major innovations are the use of a new measure of non-resource tax revenues and the correction of the traditional method of tax effort estimation by accounting for structural economic and human vulnerabilities. The results indicate that economic vulnerability is harmful to tax while human asset enhances tax. Moreover, Sub-Saharan African countries exhibit an outstanding vulnerability-adjusted tax effort compared to the other countries.

Suggested Citation

  • Djedje Hermann YOHOU & Michaël GOUJON, 2017. "Reassessing Tax Effort in Developing Countries: a Proposal of a Vulnerability-Adjusted Tax Effort Index (VATEI)," Working Papers P186, FERDI.
    • Handle: RePEc:fdi:wpaper:3519
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    References listed on IDEAS

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    Cited by:

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    2. Asongu, Simplice A. & Adegboye, Alex & Nnanna, Joseph, 2021. "Promoting female economic inclusion for tax performance in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 159-170.
    3. Abel Gwaindepi, 2021. "Domestic revenue mobilisation in developing countries: An exploratory analysis of sub‐Saharan Africa and Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 396-421, March.
    4. Sèna Kimm Gnangnon, 2020. "Export product diversification and tax performance quality in developing countries," International Economics and Economic Policy, Springer, vol. 17(4), pages 849-876, October.
    5. Hermann D. Yohou, 2023. "Corruption, tax reform and fiscal space in emerging and developing economies," The World Economy, Wiley Blackwell, vol. 46(4), pages 1082-1118, April.
    6. Djedje Hermann Yohou, 2020. "Corruption, Tax reform and Fiscal space in Emerging and Developing Economies," Working Papers hal-02987268, HAL.
    7. Emilie Caldeira & Alou Adessé Dama & Ali Compaoré & Mario Mansour & Grégoire Rota-Graziosi, 2020. "Tax effort in Sub-Saharan African countries : evidence from a new dataset," CERDI Working papers hal-02543162, HAL.
    8. Émilie Caldeira & Ali Compaore & Alou Adessé Dama & Mario Mansour & Grégoire Rota-Graziosi, 2019. "Effort fiscal en Afrique subsaharienne : les résultats d’une nouvelle base de données," Revue d’économie du développement, De Boeck Université, vol. 27(4), pages 5-51.
    9. Onesmo Kaiya Mackenzie, 2021. "Efficiency of tax revenue administration in Africa," Working Papers 02/2021, Stellenbosch University, Department of Economics.
    10. Gnangnon, Sèna Kimm, 2022. "Effect of structural economic vulnerability on the participation in international trade," EconStor Preprints 262004, ZBW - Leibniz Information Centre for Economics.
    11. Rafael Aguirre Unceta, 2021. "Mining revenue, fiscal space and social policies: the case of Zambia," Working Papers 191, International Policy Centre for Inclusive Growth.

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