DO INTERNATIONAL REMITTANCES AFFECT THE LEVEL AND THE VOLATILITY OF GOVERNMENT TAX REVENUES?
Version of Record online: 19 NOV 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Journal of International Development
Volume 26, Issue 7, pages 1039–1053, October 2014
How to Cite
2014), DO INTERNATIONAL REMITTANCES AFFECT THE LEVEL AND THE VOLATILITY OF GOVERNMENT TAX REVENUES?, J. Int. Dev., 26, 1039–1053. doi: 10.1002/jid.2979(
- Issue online: 7 OCT 2014
- Version of Record online: 19 NOV 2013
- Manuscript Accepted: 15 OCT 2013
- Manuscript Revised: 12 OCT 2013
- Manuscript Received: 28 SEP 2011
- tax revenue;
- tax revenue instability
This paper examines whether international remittance inflows expand fiscal space in receiving through their positive effects on the level and the stability of government tax revenues. It investigates whether these effects of remittances are conditional on the presence of a value added tax (VAT). Using a large sample of countries, and even after factoring in the endogeneity of remittances and the VAT adoption, this study highlights that remittance inflows increase the level and the stability of government tax revenue ratio in presence of a VAT. Copyright © 2013 John Wiley & Sons, Ltd.