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Impact of bridging the Internet gap on public revenue mobilization

Author

Listed:
  • Sèna Kimm Gnangnon

    (World Trade Organization)

  • Jean-François Brun

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper contributes to the existing literature on the macroeconomic impact of Internet development by investigating how, for a given country, the reduction of the gap between its intensity of Internet usage and the world average Internet usage intensity influences its public revenue mobilization. The analysis covers 164 countries (including both developed and developing countries) for the period 1995–2013, and uses non-resource tax revenue as the measure of public revenue. The analysis was undertaken for the full sample as well as for several sub-samples, using the Generalized Methods of Moments (GMM) approach. The empirical results for the full sample suggest that when a country reduces the aforementioned gap, it experiences, over the short to medium term, a rise in non-resource tax revenue. The results also show that low-income countries (LICs) obtain the biggest positive impact by reducing this gap.

Suggested Citation

  • Sèna Kimm Gnangnon & Jean-François Brun, 2018. "Impact of bridging the Internet gap on public revenue mobilization," Post-Print hal-01797951, HAL.
    • Handle: RePEc:hal:journl:hal-01797951
    DOI: 10.1016/j.infoecopol.2018.04.001
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    Cited by:

    1. 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.
    2. Kodjo Adandohoin & Jean-Francois Brun, 2021. "The Role of Income and Property Taxes in Tax Transition and the Mediating Effect of Financial Development," Post-Print hal-03470540, HAL.
    3. Sèna Kimm Gnangnon & Jean-François Brun, 2019. "Internet and the structure of public revenue: resource revenue versus non-resource revenue," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-26, December.
    4. Kodjo Adandohoin & Jean-Francois Brun, 2020. "Are incomes and property taxes effective instruments for tax transition?," Working Papers hal-03053683, HAL.
    5. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    6. David Hanrahan, 2021. "Digitalization as a Determinant of Tax Revenues in OECD Countries: A Static and Dynamic Panel Data Analysis," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 7(4), pages 321-348, October.
    7. von Haldenwang, Christian, 2020. "Digitalising the fiscal contract: An interdisciplinary framework for empirical inquiry," IDOS Discussion Papers 20/2020, German Institute of Development and Sustainability (IDOS).
    8. Sèna Kimm Gnangnon, 2022. "Financial development and tax revenue in developing countries: investigating the international trade channel," SN Business & Economics, Springer, vol. 2(1), pages 1-26, January.
    9. Compaoré, Ali, 2022. "Access-for-all to financial services: Non-resources tax revenue-harnessing opportunities in developing countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 236-245.
    10. Gnangnon, Sèna Kimm, 2020. "Internet and tax reform in developing countries," Information Economics and Policy, Elsevier, vol. 51(C).
    11. Kodjo Adandohoin & Jean-Francois Brun, 2020. "Are incomes and property taxes effective instruments for tax transition?," CERDI Working papers hal-03053683, HAL.
    12. Jean-François Brun & Gérard Chambas & Jules Tapsoba & Abdoul-Akim Wandaogo, 2020. "Are ICT's boosting tax revenues? Evidence from developing countries," CERDI Working papers hal-02979897, HAL.
    13. Bruno Emmanuel Ongo Nkoa & Jacques Simon Song, 2022. "Les canaux de transmission des effets des TIC sur la mobilisation des recettes fiscales en Afrique," African Development Review, African Development Bank, vol. 34(S1), pages 80-101, July.
    14. Adegboye, Alex & Uwuigbe, Uwalomwa & Ojeka, Stephen & Uwuigbe, Olubukunola & Dahunsi, Olajide & Adegboye, Kofo, 2022. "Driving information communication technology for tax revenue mobilization in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(7).
    15. Jean-François Brun & Gérard Chambas & Jules Tapsoba & Abdoul-Akim Wandaogo, 2020. "Are ICT's boosting tax revenues? Evidence from developing countries," Working Papers hal-02979897, HAL.
    16. Gnangnon, Sèna Kimm, 2019. "Financial Development and Tax Revenue in Developing Countries: Investigating the International Trade and Economic Growth Channels," EconStor Preprints 206628, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    Internet distance Non-resource tax revenue;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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