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.

The present study investigated informal financial markets in Gaborone, Botswana, with specific focus on the terms and conditions for informal credit, its main uses and the target clientele. The study used primary data, and analytical techniques that included descriptive statistics and analysis of variance. The results show that informal lenders give short-term consumption loans consisting of small amounts, charge very high interest rates, use innovative collateral substitutes such as automatic teller machine (ATM) cards plus personal identification numbers (PINs) and valuable household assets as security, and target mainly the non-poor. The paper makes three policy recommendations: an appropriate regulatory framework for the informal financial sector should be developed, interest rates and other charges should be systematically disclosed so as to encourage competition and reduce the high interest rates, and there should be legislation against the use of ATMs and PINs as security.Informal financial markets, Botswana,