IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03098695.html
   My bibliography  Save this paper

Tax revenues and social protection financing in African and Latin American countries

Author

Listed:
  • Afrika Ndongozi-Nsabimana

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

Social protection plays an important role in the achievement of development. Hence, it is highlighted in the Sustainable Development Goals (SDGS) 1,3,5,8 and 10. One of the solutions to achieve universal protection coverage, notably in African and Latin American countries, is sustainable financing. This article focuses on one type of financing, which is tax revenues and its possible effects on public social protection expenditures in percentage of Gross Domestic Product (GDP) as a proxy for social protection financing. It is assumed that the greater the share of tax revenues in GDP is, the greater the resources available for social protection programs are. This would allow better financial sustainability of these programs. Using a panel analysis, the study finds a positive but non-significant effect of total tax revenues and resource tax revenues. As for non-resource tax revenues, they have a positive and significant effect as well as the control variables "rural population", "population aged 65 years and over".

Suggested Citation

  • Afrika Ndongozi-Nsabimana, 2020. "Tax revenues and social protection financing in African and Latin American countries," Post-Print hal-03098695, HAL.
    • Handle: RePEc:hal:journl:hal-03098695
    Note: View the original document on HAL open archive server: https://hal.science/hal-03098695
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03098695/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hsu, Minchung & Huang, Xianguo & Yupho, Somrasri, 2015. "The development of universal health insurance coverage in Thailand: Challenges of population aging and informal economy," Social Science & Medicine, Elsevier, vol. 145(C), pages 227-236.
    2. William Robert Reed, 2015. "On the Practice of Lagging Variables to Avoid Simultaneity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(6), pages 897-905, December.
    3. Syed Mansoob Murshed & Muhammad Badiuzzaman & Mohammad Habibullah Pulok, 2017. "Fiscal capacity and social protection expenditure in developing nations," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).
    4. Cremer, Helmuth & Pestieau, Pierre, 2003. "Social insurance competition between Bismarck and Beveridge," Journal of Urban Economics, Elsevier, vol. 54(1), pages 181-196, July.
    5. Mario MANSOUR, 2014. "A Tax Revenue Dataset for Sub-Saharan Africa: 1980-2010," Working Papers I19, FERDI.
    6. Ms. Sònia Muñoz & Stanley Sang-Wook Cho, 2003. "Social Impact of a Tax Reform: The Case of Ethiopia," IMF Working Papers 2003/232, International Monetary Fund.
    7. Syed Mansoob Murshed & Muhammad Badiuzzaman & Mohammad Habibullah Pulok, 2017. "Fiscal capacity and social protection expenditure in developing nations," WIDER Working Paper Series wp-2017-60, World Institute for Development Economic Research (UNU-WIDER).
    8. Armando Barrientos, 2007. "Financing Social Protection," Global Development Institute Working Paper Series 0507, GDI, The University of Manchester.
    9. Elliott Harris, 2013. "Financing social protection floors: Considerations of fiscal space," International Social Security Review, John Wiley & Sons, vol. 66(3-4), pages 111-143, July.
    10. Jay Pan & Gordon G. Liu, 2012. "The Determinants Of Chinese Provincial Government Health Expenditures: Evidence From 2002–2006 Data," Health Economics, John Wiley & Sons, Ltd., vol. 21(7), pages 757-777, July.
    11. Zemmour, Michaël, 2012. "Cotisations sociales, taxes et déficit. Évolution du financement de la protection sociale en Europe 1980-2007," European Journal of Economic and Social Systems, Lavoisier, vol. 25(1-2), pages 97-112.
    12. James Banks & Carl Emmerson, 2000. "Public and private pension spending: principles, practice and the need for reform," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 1-63, March.
    13. Alan D. Viard, 2002. "Pay-as-you-go Social Security and the aging of America: an economic analysis," Economic and Financial Policy Review, Federal Reserve Bank of Dallas.
    14. Samuelson, Paul A, 1975. "Optimum Social Security in a Life-Cycle Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(3), pages 539-544, October.
    15. Christian Keuschnigg & Mirela Keuschnigg & Christian Jaag, 2011. "Aging and the Financing of Social Security in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(II), pages 181-231, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Afrika Ndongozi-Nsabimana, 2020. "Recettes fiscales et financement de la protection sociale dans les pays africains et d’Amérique Latine," Post-Print hal-03098710, HAL.
    2. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324, Elsevier.
    3. Sena Kimm Gnangnon, 2019. "Fiscal Space for Trade: How Could the International Trade Community Help?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-42, February.
    4. Cornia, Giovanni Andrea & Martorano, Bruno, 2017. "Income Inequality Trends in sub-Saharan Africa: Divergence, determinants and consequences: Inequality and Growth in an Agricultural-led Development Model: The case of Ethiopia over 1995-2011," UNDP Africa Reports 267649, United Nations Development Programme (UNDP).
    5. Pulapre Balakrishnan & M Parameswaran, 2019. "Modeling the Dynamics of Inflation in India," Working Papers 16, Ashoka University, Department of Economics.
    6. Sijbren Cnossen, 2015. "Mobilizing VAT revenues in African countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(6), pages 1077-1108, December.
    7. Pan, Jay & Qin, Xuezheng & Li, Qian & Messina, Joseph P. & Delamater, Paul L., 2015. "Does hospital competition improve health care delivery in China?," China Economic Review, Elsevier, vol. 33(C), pages 179-199.
    8. Hafner, Marco & Yerushalmi, Erez & Andersson, Fredrik L. & Burtea, Teodor, 2020. "Quantifying the macroeconomic cost of night-time bathroom visits: an application to the UK," CAFE Working Papers 5, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    9. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 443-478.
    10. Kevin Pineda‐Hernández & François Rycx & Mélanie Volral, 2022. "How collective bargaining shapes poverty: New evidence for developed countries," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 895-928, December.
    11. Robert M. Solow, 2000. "La teoria neoclassica della crescita e della distribuzione," Moneta e Credito, Economia civile, vol. 53(210), pages 149-185.
    12. Andersen, Torben M. & Bhattacharya, Joydeep & Gestsson, Marias H., 2021. "Pareto-improving transition to fully funded pensions under myopia," Journal of Demographic Economics, Cambridge University Press, vol. 87(2), pages 169-212, June.
    13. Kaganovich, Michael & Zilcha, Itzhak, 1999. "Education, social security, and growth," Journal of Public Economics, Elsevier, vol. 71(2), pages 289-309, February.
    14. Kalle Hirvonen & Giulia Mascagni & Keetie Roelen, 2018. "Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia," International Social Security Review, John Wiley & Sons, vol. 71(1), pages 3-24, January.
    15. Huang, Xianguo & Yoshino, Naoyuki, 2015. "Impacts of Universal Health Coverage: A Micro-founded Macroeconomic Perspective," ADBI Working Papers 533, Asian Development Bank Institute.
    16. Kshitiz Shrestha & Jorge Martinez‐Vazquez & Charles Hankla, 2023. "Political decentralization and corruption: Exploring the conditional role of parties," Economics and Politics, Wiley Blackwell, vol. 35(1), pages 411-439, March.
    17. Natalia Zugravu-Soilita, 2019. "Trade in Environmental Goods and Air Pollution: A Mediation Analysis to Estimate Total, Direct and Indirect Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1125-1162, November.
    18. Bansal, Shashank & Thenmozhi, M., 2020. "Does Concentrated Founder Ownership Affect Related Party Transactions? Evidence from an Emerging Economy," Research in International Business and Finance, Elsevier, vol. 53(C).
    19. Denis Cogneau & Yannick Dupraz & Justine Knebelmann & Sandrine Mesplé-Somps, 2021. "Taxation in Africa from Colonial Times to Present Evidence from former French colonies 1900-2018," Working Papers halshs-03420664, HAL.
    20. Giorgio Bellettini & Carlotta Berti Ceroni, 1999. "Is Social Security Really Bad for Growth?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(4), pages 796-819, October.

    More about this item

    Keywords

    Social protection financing; SDGs; Developing countries.; Tax revenues; Social protection;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03098695. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.