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Internet and the structure of public revenue: resource revenue versus non-resource revenue

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  • Sèna Kimm Gnangnon

    (World Trade Organization)

  • Jean-François Brun

    (Université Clermont Auvergne)

Abstract

This paper examines whether the Internet has led to a shift from reliance on resource revenue towards progressive reliance on non-resource revenue, which is ultimately a sustainable source of public revenue. The analysis has been carried out using a sample of 99 countries, including both developed and developing countries, over 1995–2015. Empirical results obtained from the use of the two-step system GMM approach suggest that the Internet induces a change in the structure of public revenue, in particular from resource revenue towards non-resource revenue. In addition, this effect is higher for less advanced countries than for more advanced economies. Thus, the Internet could be a powerful tool for governments to reduce their dependence on resource revenue, in particular in resource-rich countries.

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  • 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.
    • Handle: RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-018-0132-0
    DOI: 10.1186/s40008-018-0132-0
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    Cited by:

    1. Gnangnon, Sèna Kimm, 2020. "Internet and tax reform in developing countries," Information Economics and Policy, Elsevier, vol. 51(C).
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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).
    7. 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.

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    More about this item

    Keywords

    Internet; Resource revenue; Non-resource revenue;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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