Arbeitspapier
Taxation, infrastructure, and firm performance in developing countries
This paper investigates the relationship between taxation and firm performance in developing countries. Taking firm-level data from the World Bank Enterprise Surveys (WBES) and tax data from the Government Revenue Dataset (ICTD/UNU-WIDER), our results suggest that tax revenue benefits to firm growth in developing countries, especially in low-income countries and lower-middle income countries. These findings are robust to the inclusion of alternative covariates and specifications, and do not appear to be sample dependent. We also provide evidence that the positive effect of taxation on firm growth falls significantly when corruption is too pervasive, and when the origin of tax revenue origin reduces government accountability. Lastly, our paper finds that the positive effect of domestic revenue on firm performance could channel through the financing of public infrastructures vital to firms operating in lower-income countries.
- ISBN
-
978-92-9256-147-5
- Language
-
Englisch
- Bibliographic citation
-
Series: WIDER Working Paper ; No. 2016/103
- Classification
-
Wirtschaft
- Subject
-
taxation
firm growth
infrastructure
corruption
- Event
-
Geistige Schöpfung
- (who)
-
Chauvet, Lisa
Ferry, Marin
- Event
-
Veröffentlichung
- (who)
-
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
- (where)
-
Helsinki
- (when)
-
2016
- DOI
-
doi:10.35188/UNU-WIDER/2016/147-5
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Chauvet, Lisa
- Ferry, Marin
- The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Time of origin
- 2016
Other Objects (12)
Infrastructure finance in developing countries: An overview
Firm-Level Upgrading in Developing Countries
Taxation in developing countries: Case study of Cameroon
Automotive taxation in the cities of developing countries
Green infrastructure planning in developing countries; developing green concept in Kurdistan region-Iraq
Infrastructure in developing countries : An overview of some economic issues
Infrastructure in developing countries: An overview of some economic issues
Innovation, firm productivity, and export survival: Firm-level evidence from ASEAN developing countries
Estimating infrastructure financing needs in the Asia-Pacific least developed countries, landlocked developing countries, and small island developing states
Relative treatment of aliens: Firm-level evidence from developing countries
Developing Heritage – Developing Countries
Financing greener and climate-resilient infrastructure in developing countries - challenges and opportunities
Infrastructure finance in developing countries: An overview
Firm-Level Upgrading in Developing Countries
Taxation in developing countries: Case study of Cameroon
Automotive taxation in the cities of developing countries
Green infrastructure planning in developing countries; developing green concept in Kurdistan region-Iraq
Infrastructure in developing countries : An overview of some economic issues
Infrastructure in developing countries: An overview of some economic issues
Innovation, firm productivity, and export survival: Firm-level evidence from ASEAN developing countries
Estimating infrastructure financing needs in the Asia-Pacific least developed countries, landlocked developing countries, and small island developing states
Relative treatment of aliens: Firm-level evidence from developing countries
Developing Heritage – Developing Countries
Financing greener and climate-resilient infrastructure in developing countries - challenges and opportunities
Infrastructure finance in developing countries: An overview
Firm-Level Upgrading in Developing Countries
Taxation in developing countries: Case study of Cameroon
Automotive taxation in the cities of developing countries
Green infrastructure planning in developing countries; developing green concept in Kurdistan region-Iraq
Infrastructure in developing countries : An overview of some economic issues
Infrastructure in developing countries: An overview of some economic issues
Innovation, firm productivity, and export survival: Firm-level evidence from ASEAN developing countries
Estimating infrastructure financing needs in the Asia-Pacific least developed countries, landlocked developing countries, and small island developing states
Relative treatment of aliens: Firm-level evidence from developing countries
Developing Heritage – Developing Countries