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- Title
NATURAL RESOURCE ABUNDANCE, INSTITUTIONS AND TAX REVENUE MOBILISATION IN SUB-SAHARA AFRICA.
- Authors
BOTLHOLE, THUTO; ASAFU-ADJAYE, JOHN; CARMIGNANI, FABRIZIO
- Abstract
The contribution of natural resources to tax revenues has generally yielded mixed results in the literature. This study asserts that the missing link to explaining these differences is the quality of institutions. More resource revenues reduce tax revenues when institutions are poor. Using an interaction term for natural resources and institutional quality, we show that institutions are decisive for the contribution of natural resources to tax revenue mobilisation. The interaction effect is statistically significant after controlling for per capita gross domestic product (GDP), an alternative measure of quality of institutions and additional regressors. This finding is robust to different econometric specifications and the type of natural resources.
- Subjects
SUB-Saharan Africa; NATURAL resources management; GOVERNMENT revenue; PER capita; GROSS domestic product; ECONOMETRICS
- Publication
South African Journal of Economics, 2012, Vol 80, Issue 2, p135
- ISSN
0038-2280
- Publication type
Article
- DOI
10.1111/j.1813-6982.2011.01305.x