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Impact of export upgrading on tax revenue in developing and high-income countries

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  • Sèna Kimm Gnangnon
  • Jean-François Brun

Abstract

Empirical studies usually analyse the relationship between an economy’s trade sector and tax revenue in developing countries through the effect of trade liberalization on tax revenue. This paper takes a different angle by examining the impact of export upgrading strategies (export diversification and improvement in export quality) on non-resource tax revenue. The panel data-set covers a sample of 172 countries, including both developed and developing countries, spanning the period 1980–2010. The analysis is conducted both on the entire sample and sub-samples. The findings indicate that export product upgrading exerts a positive and significant effect on non-resource tax revenue, including for the sub-samples considered, with the exception of low-income countries for which we observe mixed results. Moreover, countries which upgrade their export products in a context of trade openness consistently experience higher non-resource tax revenue, both in the short and long term.

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  • Sèna Kimm Gnangnon & Jean-François Brun, 2017. "Impact of export upgrading on tax revenue in developing and high-income countries," Oxford Development Studies, Taylor & Francis Journals, vol. 45(4), pages 542-561, October.
    • Handle: RePEc:taf:oxdevs:v:45:y:2017:i:4:p:542-561
    DOI: 10.1080/13600818.2017.1313398
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    Cited by:

    1. 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.
    2. 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.
    3. Jean-François Brun & Sèna Kimm Gnangnon, 2019. "Tax reform, public revenue and public revenue instability in developing countries: Does development aid matter?," Working Papers halshs-02089734, HAL.
    4. Trinh, Vu Quang & Nguyen, Anh Thi Quynh & Vo, Xuan Vinh, 2022. "Export quality upgrading and environmental sustainability: Evidence from the East Asia and Pacific Region," Research in International Business and Finance, Elsevier, vol. 60(C).
    5. Abdramane Camara, 2023. "The Effect of Foreign Direct Investment on Tax Revenue," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 168-190, March.
    6. Sèna Kimm Gnangnon, 2018. "Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(2), pages 249-276, December.
    7. Kodjo Adandohoin & Jean-Francois Brun, 2020. "Are incomes and property taxes effective instruments for tax transition?," CERDI Working papers hal-03053683, HAL.
    8. Jean-François Brun & Sèna Kimm Gnangnon, 2019. "Tax reform, public revenue and public revenue instability in developing countries: Does development aid matter?," CERDI Working papers halshs-02089734, HAL.
    9. Seydou Coulibaly, 2019. "Impact of natural resource wealth on non-resource tax revenue mobilization in Africa: Do institutions and economic diversification matter?," CERDI Working papers halshs-02108128, HAL.
    10. Gnangnon, Sèna Kimm & Brun, Jean-François, 2018. "Impact of bridging the Internet gap on public revenue mobilization," Information Economics and Policy, Elsevier, vol. 43(C), pages 23-33.
    11. Abdramane Camara, 2019. "The effect of foreign direct investment on tax revenue in developing countries," Working Papers hal-03188025, HAL.
    12. Gnangnon Sena Kimm, 2018. "Export Product Concentration and De Facto Fiscal Space: Does Openness to International Trade matter?," Global Economy Journal, De Gruyter, vol. 18(1), pages 1-12, March.
    13. 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.
    14. Jean-François Brun & Seydou Coulibaly, 2019. "Domestic and cross border spillover effects of corporate tax policy in Africa," CERDI Working papers halshs-02108168, HAL.
    15. Kodjo Adandohoin & Jean-Francois Brun, 2020. "Are incomes and property taxes effective instruments for tax transition?," Working Papers hal-03053683, HAL.
    16. Seydou Coulibaly, 2019. "Impact of natural resource wealth on non-resource tax revenue mobilization in Africa: Do institutions and economic diversification matter?," Working Papers halshs-02108128, HAL.
    17. Shrestha, Santosh & Kotani, Koji & Kakinaka, Makoto, 2021. "The relationship between trade openness and government resource revenue in resource-dependent countries," Resources Policy, Elsevier, vol. 74(C).
    18. 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.
    19. Sèna Kimm Gnangnon & Jean-François Brun, 2020. "Tax reform and fiscal space in developing countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 237-265, June.
    20. Sèna Kimm Gnangnon, 2020. "Export product diversification and tax performance quality in developing countries," International Economics and Economic Policy, Springer, vol. 17(4), pages 849-876, October.
    21. Sena Kimm Gnangnon, 2020. "Effect of Development Aid on Tax Reform in Recipient-Countries: Does Trade Openness Matter?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-23, January.
    22. Sena Kimm Gnangnon & Jean-François Brun, 2018. "Impact of Multilateral Trade Liberalization on Resource Revenue," Economies, MDPI, vol. 6(4), pages 1-19, November.
    23. 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.
    24. 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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