Natural Resource Endowments, Governance, and the Domestic RevenueEffort: Evidence from a Panel of Countries

Download or read book Natural Resource Endowments, Governance, and the Domestic RevenueEffort: Evidence from a Panel of Countries written by Fabian Bornhorst and published by INTERNATIONAL MONETARY FUND. This book was released on 2008-07-01 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent development literature stresses that countries that receive large revenues from natural resource endowments typically raise less revenue from domestic taxation, and that this creates governance problems because the lower domestic tax effort reduces the incentive for the public scrutiny of government. Our results from a panel of 30 hydrocarbon producing countries indicate that the offset between hydrocarbon revenues and revenues from other domestic sources is about 20 percent but that it is invariant to governance indicators.