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 in the last four decades, making oil revenues grow slower than output from manufacturing and yielding a low GDP growth for oil-exporting countries. This is illustrated in a two-country model of oil depletion which examines why a net oil-exporting country and a net oil-importing country are differently affected by increased taxes on resource use. The hypothesis is constructed on the theory of non-renewableresources taxation. The argument is based on the distributional effects of taxes on exhaustible resources, which are mainly borne by the suppliers. The theoretical predictions are not invalidated by available statistics.
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Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 09-012.
Date of creation: 12 Feb 2009
Date of revision:
oil curse; non-renewable resources; taxes; oil revenues; GDP;
Other versions of this item:
- DAUBANES Julien, 2009. "Taxation of Oil Products and GDP Dynamics of Oil-rich Countries," LERNA Working Papers 09.03.279, LERNA, University of Toulouse.
- 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.
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
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