Taxation of Oil Products and GDP Dynamics of Oil-rich Countries
AbstractThis article proposes a complementary explanation for why oil-rich economies have experienced a relative low GDP growth over the last decades: the proportion of taxes in the prices of petroleum products have been globally increasing for the four last decades, thus making oil revenues grow slower than output from manufacturing and yielding a low growth of oil-exporting countries' GDPs. This is illustrated in a two-country model of oil depletion examining why a net oil-exporting country and a net oil-importing country are dierently affected by increasing taxes on the resource use. The hypothesis is constructed on the theory of non-renewable resources taxation. The argument is based on the distributional effects of taxes on exhaustible resources, that are mainly borne by the suppliers. The theoretical predictions are not invalidated when put up against available statistics.
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Bibliographic InfoPaper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 09.03.279.
Date of creation: Feb 2009
Date of revision:
Other versions of this item:
- Julien Daubanes, 2009. "Taxation of Oil Products and GDP Dynamics of Oil-rich Countries," CER-ETH Economics working paper series 09/102, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Daubanes, Julien, 2009. "Taxation of Oil Products and GDP Dynamics of Oil-Rich Countries," TSE Working Papers 09-012, Toulouse School of Economics (TSE).
- Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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