Globalisation and developing countries -a shrinking tax base?

Joshua Aizenman, Yothin Jinjarak

Research output: Contribution to journalArticlepeer-review

67 Scopus citations

Abstract

This paper evaluates the impact of globalisation on tax bases of countries at varying stages of development. We see globalisation as a process that induces countries to embrace greater trade and financial integration. This in turn should shift their tax revenue from 'easy to collect' taxes (tariffs and seigniorage) towards 'hard to collect' taxes (value added and income taxes). We find that trade and financial openness have a positive association with the 'hard to collect' taxes, and a negative association with the easy to collect taxes.

Original languageEnglish
Pages (from-to)653-671
Number of pages19
JournalJournal of Development Studies
Volume45
Issue number5
DOIs
StatePublished - 1 May 2009
Externally publishedYes

ASJC Scopus subject areas

  • Development

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