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The Revenue and Double Dividend Potential of Taxes on International Private Capital Flows and Securities Transactions

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  • Ilene Grabel

Abstract

This paper explores two proposals to tax financial flows in developing economies—the package of policies implemented to various degrees by Chile and Colombia during the 1990s, widely referred to today as the Chilean model—and securities transactions taxes (STTs). I find that each provides a viable mechanism to raise revenue in some developing countries.

Suggested Citation

  • Ilene Grabel, 2003. "The Revenue and Double Dividend Potential of Taxes on International Private Capital Flows and Securities Transactions," WIDER Working Paper Series DP2003-83, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-83
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    References listed on IDEAS

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    1. Sebastian Edwards, 1999. "How Effective Are Capital Controls?," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 65-84, Fall.
    2. Ilene Grabel, 2003. "Averting crisis? Assessing measures to manage financial integration in emerging economies," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(3), pages 317-336, May.
    3. Thomas Palley, 2001. "Destabilizing Speculation and the Case for an International Currency Transactions Tax," Challenge, Taylor & Francis Journals, vol. 44(3), pages 70-89.
    4. Mr. Howell H Zee, 2000. "Retarding Short-Term Capital Inflows Through withholding Tax," IMF Working Papers 2000/040, International Monetary Fund.
    5. Umlauf, Steven R., 1993. "Transaction taxes and the behavior of the Swedish stock market," Journal of Financial Economics, Elsevier, vol. 33(2), pages 227-240, April.
    6. Charles Kennedy, 1955. "Stamp Duties as a Capital Gains Tax," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(3), pages 241-244.
    7. Stanley Fischer, 2003. "Financial crises and reform of the international financial system," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(1), pages 1-37, March.
    8. repec:wbk:wbpubs:13921 is not listed on IDEAS
    9. Stiglitz, J.E., 1989. "Using Tax Policy To Curb Speculative Short-Term Trading," Papers t2, Columbia - Center for Futures Markets.
    10. repec:imf:imfops:2003/007 is not listed on IDEAS
    11. Ocampo, José Antonio, 2003. "Capital-account and counter-cyclical prudential regulations in developing countries," Copublicaciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1796.
    12. K.S. Jomo & Ilene Grabel & Gerald Epstein, 2003. "Capital Management Techniques In Developing Countries: An Assessment of Experiences From the 1990s and Lessons for the Future," Working Papers wp56, Political Economy Research Institute, University of Massachusetts at Amherst.
    13. Dean Baker, 2001. "Why Do We Avoid Financial-Transactions Taxes?," Challenge, Taylor & Francis Journals, vol. 44(3), pages 90-96.
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    Cited by:

    1. Ilene Grabel, 2005. "Taxation of International Private Capital Flows and Securities Transactions in Developing Countries: Do Public Finance Considerations Augment the Macroeconomic Dividends?," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(4), pages 477-497.
    2. Robin Boadway, 2003. "National Taxation, Fiscal Federalism and Global Taxation," WIDER Working Paper Series DP2003-87, World Institute for Development Economic Research (UNU-WIDER).

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