The Impact of Resource Taxation on Resource Curse: Evidence from Chinese Resource Tax Policy

Ren, Junlin; Wang, Yun

doi:10.2139/ssrn.4028994

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“…Firstly, it is based on the explanation of the economic mechanisms of the resource curse. Indeed, one aspect of the resource curse is that price instability causes the fluctuation of the financial revenue of the resource-based government, which results in the inefficiency and instability of macroeconomic management (Leong and Mohaddes 2011;Van der Ploeg 2011;Wang et al 2019;Sun, Ren and Wang 2022).…”

Section: Introductionmentioning

confidence: 99%

Effect of International Commodity Price Shocks on Public Finances in Africa

Diarra

2022

Public Finance Review

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This paper empirically investigates the macroeconomic responses to commodity price shocks with a focus on fiscal variables in a sample of thirty-three African commodity-dependent countries. Using the heterogeneous panel structural vector autoregressive (SVAR) approach developed by Pedroni, we find that government revenues as well as government expenditures react to commodity export prices shock. However, there is a large degree of heterogeneity across countries. Following country characteristics, we find that the response of fiscal variables is higher for countries dependent on extractive commodities than those dependent on agricultural ones. We also highlight the benefits of flexible exchange rate regimes for accommodating external shocks and ensuring macroeconomic stability, which in turn is beneficial to government revenue mobilization. Our results suggest that the African government should seize commodities as an opportunity and increase their efforts in revenue mobilization during price booms and make a productive investment to isolate their finances from commodity price collapses.

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Section: Introductionmentioning

confidence: 99%

Effect of International Commodity Price Shocks on Public Finances in Africa

Diarra

2022

Public Finance Review

View full text Add to dashboard Cite

show abstract

The Impact of Resource Taxation on Resource Curse: Evidence from Chinese Resource Tax Policy

Cited by 1 publication

References 0 publications

Effect of International Commodity Price Shocks on Public Finances in Africa

Effect of International Commodity Price Shocks on Public Finances in Africa

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