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Trade Liberalization, Exchange Rate Changes, and Tax Revenue in Sub-Saharan Africa, Terence Agbeyegbe, Janet Stotsky, Asegedech WoldeMariam

Abstract
Empirical evidence on the relationship between trade liberalization, exchange rates, and tax revenue is mixed. This paper examines these linkages anew. Using a panel of 22 countries in Sub-Saharan Africa, over 1980-1996, we perform Generalized Method of Moment regressions to test this relationship. We find evidence that the relationship between trade liberalization and tax revenue is sensitive to the measure used to proxy trade liberalization, but that, in general, trade liberalization is not strongly linked to aggregate tax revenue or its components-though with one measure, it is linked to higher income tax revenue. Currency appreciation and higher inflation show some linkage to lower tax revenues or its components. These results show some partial consistency with previous findings, and support the notion that trade liberalization accompanied by appropriate macroeconomic policies can be undertaken in a way that preserves overall revenue yield
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. THEORETICAL CONSIDERATIONS AND REVIEW OF EMPIRICAL WORK""; ""A. International Trade Taxes""; ""B. Taxes on Goods and Services""; ""C. Taxes on Income and Profits and Capital Gains""; ""III. DATA AND METHODOLOGY""; ""IV. EMPIRICAL RESULTS""; ""V. CONCLUSION""; ""Data Definitions""; ""References""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (32 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781451904345

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