How Does Financial Sector Development Improve Tax Revenue Mobilization for Developing Countries?

Autor: AGUIMA AIME BERNARD LOMPO
Přispěvatelé: Centre d'Études et de Recherches sur le Développement International (CERDI), Institut de Recherche pour le Développement (IRD)-Centre National de la Recherche Scientifique (CNRS)-Université Clermont Auvergne (UCA), ANR-10-LABX-1401,'Investissements d'avenir',ANR-10-LABX-14-01
Rok vydání: 2023
Předmět:
Economics and Econometrics
Financial development
JEL: C - Mathematical and Quantitative Methods/C.C2 - Single Equation Models • Single Variables/C.C2.C23 - Panel Data Models • Spatio-temporal Models
JEL: E - Macroeconomics and Monetary Economics/E.E6 - Macroeconomic Policy
Macroeconomic Aspects of Public Finance
and General Outlook/E.E6.E62 - Fiscal Policy
JEL: G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
[QFIN]Quantitative Finance [q-fin]
Non-resource tax revenue
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O1 - Economic Development/O.O1.O11 - Macroeconomic Analyses of Economic Development
Domestic tax revenue
Developing countries
JEL: H - Public Economics/H.H2 - Taxation
Subsidies
and Revenue/H.H2.H20 - General
[SHS]Humanities and Social Sciences
Zdroj: Comparative Economic Studies
Comparative Economic Studies, 2023, ⟨10.1057/s41294-023-00207-9⟩
ISSN: 1478-3320
0888-7233
DOI: 10.1057/s41294-023-00207-9
Popis: International audience; This study examines the effect of financial development on tax revenue mobilization in developing countries. Our empirical analysis uses the aggregate financial index that comprises the banking system's depth (size and activity), access, and efficiency of financial institutions and financial markets. Using panel data from developing countries over the period 1995-2017, our findings suggest that more developed financial sectors positively and significantly influence the government's ability to raise tax revenue. More interestingly, we find that this favorable effect is sensitive to developing countries characteristics, namely the level of economic development, the degree of financial openness and the stance of fiscal policies. When we more precisely look at the effects of disaggregated financial development components on tax revenues mobilization, we find that the estimated coefficients on the sub-components of financial development are statistically significant, except for the financial market's efficiency. The results denote that tax revenue in developing countries depends on financial institutions and financial markets.
Databáze: OpenAIRE
Externí odkaz: