Trade Tax Revenue Research Articles

Evaluating the Spectacle of Social Exclusion in Pakistan

Social exclusion is blockage or denied access of people from various rights, resources and opportunities (democratic participation, employment, housing, employment etc) that are normally available to other members of society. The outcome of social exclusion is limited economic, political and social life creating a barrier in the way of potential growth and development. The social exclusion of people is a big challenge for policy makers and researchers now days. This study is an attempt to find out the effects of trade liberalization and tax revenues on socially excluded people of Pakistan covering the time span of 1980-2016. The auto regressive distributed lag model is applied to determine the long and short run relationship among the variables. The findings of the study reveal that trade liberalization and per capita income has vital role to decrease the level of social exclusion while increase in tax revenues is increasing the social exclusion. Further globalization of the economy is suggested for social inclusion of the people.

Poacher-population dynamics when legal trade of naturally deceased organisms funds anti-poaching enforcement

Can a regulated, legal market for wildlife products protect species threatened by poaching? It is one of the most controversial ideas in biodiversity conservation. Perhaps the most convincing reason for legalizing wildlife trade is that trade revenue could fund the protection and conservation of poached species. In this paper, we examine the possible poacher-population dynamic consequences of legal trade funding conservation. The model consists of a manager scavenging carcasses for wildlife product, who then sells the product, and directs a portion of the revenue towards funding anti-poaching law enforcement. Through a global analysis of the model, we derive the critical proportion of product the manager must scavenge, and the critical proportion of trade revenue the manager must allocate towards increased enforcement, in order for legal trade to lead to abundant long-term wildlife populations. We illustrate how the model could inform management with parameter values derived from the African elephant literature, under a hypothetical scenario where a manager scavenges elephant carcasses to sell ivory. We find that there is a large region of parameter space where populations go extinct under legal trade unless a significant portion of trade revenue is directed towards protecting populations from poaching. The model is general and therefore can be used as a starting point for exploring the consequences of funding many conservation programs using wildlife trade revenue.

Trade Credit and Revenue Sharing of Supply Chain with a Risk-Averse Retailer

In this paper, we develop three supply chain game models, i.e., the basic model, the single trade credit model, and the trade credit and revenue sharing collaboration model. Conditional value-at-risk (CVaR) criterion is used as the measure of risk assessment in these models. We analyze the optimal decisions in the centralized and decentralized situations, respectively, and verify that single trade credit cannot coordinate the supply chain. However, the collaboration contract can coordinate the supply chain. Furthermore, this paper explores the influence of risk-aversion factor, trade credit period, revenue sharing coefficient, and other parameters on the optimal decisions and studies the feasible range of Pareto improvement in the collaborative model. In numerical experiments, the results show that the decisions and profits of both the manufacturer and the retailer reply on the degree of the risk aversion, the trade credit period, and the revenue sharing coefficient. The collaborative contract effectively improves supply chain performance and achieves a ‘win-win’ situation for the supply chain members. In addition, we also consider two extensions for our research. One extension shows that the collaborative contract of trade credit and buyback can also coordinate the supply chain in a certain range. The other extension considers the optimal decision of a risk-averse manufacturer with CVaR.

Welfare implications of trade liberalization when revenue matters

ABSTRACT Some empirical studies have shown that many developing economies were unable to recover lost trade revenue from domestic taxes after implementing trade liberalizing policies. Ignoring the fiscal cost of trade liberalization when government spending is not completely wasteful may lead to misleading welfare estimates. We address these concerns by developing a model in which government spending augments the production function, enabling it to account for the role of revenue and its impact on welfare. The model is calibrated to capture the features of the Ghanaian economy. We find significant but lower welfare effects of trade liberalization when government spending on infrastructure plays an important role in the production process. The lower welfare impact of trade liberalization is explained by a decline in infrastructure spending caused by shortfalls in revenue emanating from tariff cuts. The implication of the study is that there are further welfare gains to trade liberalization but such gains are significantly reduced when fiscal costs are high. The role of revenue matters in evaluating the welfare implications of trade liberalization.

Tax transition in developing countries: do value added tax and excises really work?

This paper investigates the role of Value Added Tax (VAT) and excises in first wave tax transition (movement away from international trade taxes towards domestic revenue collection) of developing countries. Focusing on a sample of 96 developing countries over the period 1985–2013, we investigate whether the adoption of VAT enables developing countries to increase the likelihood of succeeding tax transition. Results indicate that having a VAT, allows developing countries to increase the probability of succeeding tax transition by 12%. We further investigate the extent to which VAT and excises offset trade tax revenue losses of trade liberalization in these countries. Our estimates reveal that VAT is offsetting by 52% trade tax revenue losses in developing countries with a U relationship, while this effect holds for excises duties with a U inverted relationship. The study also points out heterogeneities (while VAT-tax transition effect is robust to African and Asian countries, it seems not for Latin American countries), as well as asymmetries (the revenue collection of VAT and excises didn’t increase the period over which developing countries face an increase in trade tax). While enhancing tax administration fosters the transition process in these countries, the study however suggests taking with closer attention VAT and excises as powerful first wave tax transition tools in developing countries.

Statistical Analysis of Performance Indicators of the Leading Russian Exporters

Promoting the country’s competitiveness amid global turbulence is an important task at every level of the economy’s management. In the circumstances of Russia’s shrinking trade balance, which is due to the unfavorable resource market environment, studying the businesses of Russian exporters becomes a relevant research problem. The focus is placed on the dilemma of commodity/non-commodity exports, which is important to emerging markets.During the research, the authors conducted an analysis of revenue indicators and commodity and geographical diversification indicators of the leading Russian exporters based on materials from Expert Business Weekly, which may yield the following conclusions. First, resource companies’ export revenues are less volatile. Second, research results confirm, in a direct or an indirect way, the greater inclination and efficiency of resource exporters towards geographical (country-wise) diversification, whereas commodity diversification is an export strategy tool of non-resource companies. Third, the authors identified a positive correlation between foreign trade revenues, on the one hand, and the number of countries served and trade items offered, on the other hand, for mineral and energy companies; moreover, a higher elasticity of export revenue on a number of markets served was revealed. For the manufacturing exporters representing chemical, petrochemical, and food industries, a positive correlation between export revenues and the number of HS 4-digit commodity lines was identified in some years and industries alongside a higher elasticity of export income on number of commodity lines. The linear regression model showed that the addition of a new product in terms of HS 4-digit code would lead to a bigger increase in export income than a new national market entry. So, the authorities should support a product diversification of both commodity and manufacturing exporters encouraging the innovation.Thus, the performed analysis is of great practical importance, since Russia is the largest trading country in Central Europe. And the results shed light on export performance of its leading companies.

Effect of the Quality of Institutions on the Tax Structure in West African Economic and Monetary Union Countries (WAEMU)

The objective of this paper is to analyze the effect of the quality of institutions on the different types of tax revenues, in particular on the total tax revenue, the direct tax revenue, the domestic indirect tax revenue and the trade tax revenue. The econometric analysis used the Pooled Mean Group (PMG) estimator over the period from 1996 to 2015. The results of the estimates show that in the WAEMU zone, the quality of institutions has a positive and significant effect on all types of tax revenues except for trade tax revenue. These results are robust because they do not change according to the different indicators used to measure the quality of institutions. Furthermore, overall, GDP per capita positively and significantly affects total and indirect domestic tax revenue, while it has a negative effect on direct tax revenue. Trade openness has a positive and significant effect on all types of tax revenues, except for indirect domestic tax revenue. The share of agriculture has a positive and significant effect on all types of revenue except trade tax revenue. Inflation has a negative and significant effect on all types of tax revenues. The share of natural resources and the size of the informal sector show mixed results.

TRADE OPENNESS AND TAX STRUCTURE IN MOROCCO: EVALUATION AND IMPACTS

In the present work, we seek to empirically assess the effects of trade openness on the Moroccan tax structure. The estimations are covering the period between 1985 and 2019. The results of the modeling using the Two-Stage Least Squares (2SLS) method confirm that the reduction of customs duties has a negative impact on foreign trade revenues, and consequently, on total tax revenues. Also, the reduction in customs duties reduces domestic revenues, notably, value-added tax, and corporate tax. Additionally, it has been shown that not only do the other channels of transmission of trade openness, namely: the liberalization of imports, the promotion of exports, and the variability of the exchange rate, lead to a decrease in trade revenue, but they also bring about an increase in domestic revenue. Finally, the results of the stylized facts and economic modeling allowed us to deduce that the measures taken by Moroccan economic decision-makers to stimulate foreign trade have led to a loss of trade taxes and fiscal injustice.

The Role of Income and Property Taxes in Tax Transition and the Mediating Effect of Financial Development

This paper investigates second wave tax transition (transfer of tax pressure from border taxation towards domestic taxation) concerns in developing countries. It essentially focuses on the compensation effects of incomes and property taxes over international trade tax revenue losses in developing countries. Using a generalized method of moment estimator, we come to the evidence that, incomes and property taxes are poor instruments to balance trade tax revenue losses of trade liberalization in these countries. However, a mediating effect of financial development in the compensation nexus driven by corporate income taxes was found. We explain this result by the fact that the use of financial sector generates paper trails to government in order to enforce and raise corporate income taxes. Financial development may progressively crowd-out informal sector and leads to business formalization. Surprising, we do not find any mediating effect of financial development in the compensation patterns with personal income taxes. Nevertheless, some heterogeneities were discovered. Financial development mediates the compensation patterns of personal income taxes in Latin American countries, while the effect holds on corporate income taxes in African countries. We conclude the paper by highlighting the important role of financial development in second generation tax transition concerns over developing countries.

Analysis of the Escalation of Intercountry Trade Wars and the Computer Capabilities of Situation Centers to Assess their Consequences

The study is devoted to the analysis of intercountry trade wars, assessment of the consequences of open confrontation between China and the United States, consideration of digital programmatic and managerial mechanisms for predicting and preventing such negative phenomena. The international economic system has undergone serious shocks associated with the intercountry trade war between the United States and China, with an active phase in 2017-2019, as well as complications caused by the epidemiological situation, starting in 2020. The United States, in turn, realizing that the leadership in world trade is smoothly transferring to China, took decisive measures, unleashing an intercountry trade war that affected most of the developed countries, including the longtime trade partners of the United States. The confrontation of these leading shit not only has a detrimental effect on the economies of their trading partners, but also directly affects global socio-economic processes and becomes especially noticeable if it is between superpowers, which account for 40% of all trade revenues. Noting this situation, it should be said that there are no universal and generally accepted software solutions for assessing, analyzing and preventing such negative economic phenomena in an explicit form. One of the Russian tools that could take over the functions of calculating the consequences of intercountry trade wars is the Situation Center. Such a role would be a logical continuation of the main vector of Russia's development in the field of public administration, since a complex system of distributed situational centers has already been launched, which can effectively carry out the functions of collecting and analyzing volumetric clusters of information at the world and national levels. On the basis of such data, it will be possible to build promising software and analytical models of various levels and directions, incl. to assess and prevent escalation of trade wars.

Analisa Dampak Revitalisasi Pasar Tradisional Terhadap Pendapatan Pedagang Pasar (Studi pada Pasar Tradisional Desa Bulubrangsi Kec. Laren Kabupaten Lamongan)

This study aims to determine the impact of Traditional Market Revitalization on marked trade Revenues (stud at the Traditional Market in Bulubrangsi Village, Laren District, Regency lamongan. The independent variabel sudied was Market Revitalization impact (X). With the dependent variable being Merchant income (Y) at the Traditional Market of the Bulubangsi Village. The population in this study is that all trades of the Bulubrangsi Traditional Market who are regularly selling on the market evry day. The sampling technikue used in this study is Jenu Sampling technique with a total sample of 98 resondents. Based on the results of testing through partial T test Revitalization variable has a significant effect on the income of traditional market trades in the village of Bulubrangsi t count =23,159>t table=0,254 with a signivicant value 0,000<0,05 From these result it can be concluded that Ho is rejected while Ha is acceoted. This shows that the Revitalization carried out in the Bulubrangsi village Tradistional Market is a positive effect on merchant income.

Multilateral Trade Liberalization and Trade Tax versus Non-Trade Tax Revenue

Cet article examine l’impact de la libéralisation commerciale multilatérale (et non de la libéralisation commerciale nationale, largement explorée dans la littérature) sur l’ampleur de la diversification des recettes fiscales. Cette dernière est approximée par le ratio des recettes fiscales commerciales sur le ratio des recettes fiscales non-commerciales. L’analyse utilise principalement l’estimateur des effets fixes, sur un panel déséquilibré de 145 pays, couvrant la période 1995-2015. Les résultats montrent que la libéralisation commerciale multilatérale promeut la diversification des recettes fiscales, c’est-à-dire, qu’elle réduit le ratio des recettes fiscales commerciales aux recettes fiscales non-commerciales. En outre, les pays les moins avancés bénéficient plus que les pays relativement plus avancés de cet impact positif de la libéralisation commerciale multilatérale sur l’ampleur de la diversification des recettes fiscales. Par ailleurs, les pays fortement dépendant du secteur agricole enregistrent un effet plus important de la libéralisation commerciale multilatérale sur la diversification des recettes fiscales que les pays dont les économies sont moins dépendantes du secteur agricole. Ces résultats suggèrent donc qu’une réduction plus importante des barrières commerciales à l’échelle mondiale, notamment à travers une plus grande coopération entre les Membres de l’OMC pour promouvoir la libéralisation commerciale multilatérale, contribuerait à renforcer la diversification des recettes fiscales.

Trade Liberalization and Fiscal Stability in Developing Countries: What Does the Evidence Tell Us?

AbstractThis paper evaluates the evidence as regards the extent to which trade liberalization has led to a decline in tariff revenue, total tax revenue, government expenditure, and government debt. Conventional theory generally predicts that when tariff losses do occur, they may be recouped through better forms of taxation – though a more sophisticated body of theory suggests otherwise. The empirical evidence is also mixed. Theory driven ex‐ante models of trade liberalization assume that trade agreements are revenue neutral. Ex‐post studies suggest that theory may hold in advanced and upper middle‐income economies. However, the consequences for lower income countries are a matter for concern. The majority of the evidence finds that low income countries lose trade tax revenue and are unable to recoup much of that lost revenue. At a time when fresh bilateral trade and investment treaties are being negotiated and WTO reform is on the global policy agenda, this paper highlights the need to design a treaty regime that enhances the ability of poorer nations to mobilize domestic resources without jeopardizing fiscal and financial stability.

Internet and tax reform in developing countries

This article investigates whether greater access to the Internet influences tax reform in developing countries. Tax reform entails here the change of the tax structure in favour of domestic tax revenue, and at the expense of international trade tax revenue. The analysis has used an unbalanced panel dataset of 102 developing countries over the period 1995-2015. The empirical exercise, based on the two-step system Generalized Methods of Moments (GMM), shows that the rise in the Internet usage is associated with a higher extent of tax reform in developing countries. Specifically, low-income countries enjoy a higher positive effect of the Internet access on tax reform, compared to other groups of countries. Furthermore, the positive effect of the Internet usage on the extent of tax reform increases as countries' degree of openness to international trade rises.

Effect of Development Aid on Tax Reform in Recipient-Countries: Does Trade Openness Matter?

Based on a proposed measure of tax reform in developing countries, this paper examines both how tax reform is influenced by development aid flows, and whether this effect depends on countries’ degree of openness to international trade. Tax reform involves here the change of the tax structure in favor of domestic tax revenue and at the expense of trade tax revenue. Empirical results based on 102 developing countries over the period 1980–2015 suggest that development aid exerts a positive effect on tax reform in developing countries, with relatively less advanced countries enjoying a higher positive effect than advanced developing countries. Additionally, recipient-countries’ degree of trade openness matters for the effect of development aid on tax reform.

Trade openness, tax reform and tax revenue in developing countries

AbstractThis article investigates empirically whether the effect of tax reform (involving the progressive replacement of trade tax revenue with domestic tax revenue) in developing countries' tax revenue performance (measured by tax revenue‐to‐GDP ratio) depends on the degree of trade openness of these countries. The analysis has used an unbalanced panel data set of 95 developing countries over the period 1981–2015 and the two‐system GMM approach. Results suggest that tax reform is positively and significantly associated with tax revenue performance in developing countries, with the magnitude of this positive effect increasing as countries experience a higher development level. Additionally, and more importantly, countries that further open up their economies to international trade enjoy a higher positive effect of tax reform on tax revenue than countries that experience a lower degree of trade openness. Therefore, these findings should help dissipate the concerns of policymakers in developing countries that greater openness to international trade would further erode their tax revenue, including by lowering their international trade tax revenue. In fact, the implementation of an appropriate tax reform in the context of greater trade openness would generate higher tax revenue, while concurrently allowing countries to reap the well‐known benefits of international trade.

Tax Reform and Trade Openness in Developing Countries

Developing countries are confronted with the progressive erosion of their trade tax revenue, which then reduces their total tax revenue. In light of the unavoidable process of trade liberalization, such countries have engaged in tax transition reform to change their tax revenue structure in favor of domestic tax revenue. The current analysis uses a measure of tax transition reform (tax reform) to examine whether countries that engage in tax reform experience greater trade openness. The empirical analysis covers 92 developing countries from 1980 to 2014 and shows that tax reform is positively associated with trade openness. Interestingly, least developed countries (LDCs) appear to enjoy a higher effect of tax reform on trade openness than non-LDCs do. This is confirmed by a more general picture that shows how less advanced developing countries enjoy a higher positive effect of tax reform on trade openness than relatively advanced developing countries do.

FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP PENDAPATAN USAHA DAGANG PELINGGIH DI KECAMATAN MENGWI

Abstract: Factors that Influence Pelinggih Trade Revenue in Mengwi District. Hindus in Balihave a tradition and the thickness of typical rituals such as giving banten. Mengwi Subdistrictas an industrial center has pelinggih trading business as a source of income for the community.This study aims to determine the effect of capital, labor, raw materials and duration of businesssimultaneously and partially on the income of the trading business in Mengwi District. The dataused in this study are primary data, namely by distributing questionnaires to the traders in MengwiSubdistrict. The population used in this study was all traders in Mengwi Subdistrict. The number ofsamples used were many as 57 traders, using proportional random sampling sampling techniques.The variables studied in this study are capital, labor, raw materials, length of business and incomeof pelinggih traders. The analysis technique used in this study is Multiple Linear Regression. Basedon the results of the study it was stated that capital, labor, raw materials and duration of businesssimultaneously had a significant effect on the income of pelinggih trading businesses in MengwiDistrict. Partially, capital, labor, raw materials and duration of business have a positive andsignificant effect on the income of the pelinggih trading business in Mengwi District.Keywords: Income; capital; labor; raw materials; length of business.

A dynamic view on agricultural trade patterns and virtual water flows in Peru

Increasing integration in global markets can foster economic growth, but also impacts the use of water resources for the production of traded goods. This is particularly critical for low-and middle-income countries where increasing agricultural exports, especially of high-value horticultural products such as fresh fruits and vegetables is promoted as a pro-poor development strategy. The aim of this paper is to quantify the contribution of agricultural trade to virtual water flows and economic gains. The focus is on Peru and trade flows since 1986, as this represents a case of rapidly increasing trade flows and a rapidly changing product composition of trade. We consider long-term trade trends and changes in the product composition of trade, using a product classification, and analyze the implications for trade revenues, VW flows, blue and green water use, and economic water use efficiency. We use an innovative decomposition analysis to disentangle the drivers behind increased virtual water exports. We find that despite sharp increase in agricultural exports Peru is a net importer of virtual water, which implies that participation in international trade has been conducive for both economic growth and saving water resources at national level. We find agricultural exports to have a high economic water efficiency but to increase water scarcity and the use of blue water in producing regions. Our results imply that a focus on high-value export sectors is a valid development strategy for low- and middle-income countries from both an economic and a water perspective but that the strategic location of export production with respect to the availability of water is important for policy-makers to consider. Our approach confirms the importance of considering long-term dynamics and regional differences in research on virtual water trade.

A Review on Viruses Infecting Taro (Colocasia esculenta (L.) Schott).

Taro is an important crop in parts of the world, especially in the Pacific Islands. Like all plants, it is also susceptible to virus infections that could result in diseases, which negatively affects the source of food and trade revenue. Understanding the biology of taro viruses could improve current knowledge regarding the relationship between viruses and taro, thus allowing for a better approach towards the management of the diseases that are associated with them. By compiling and discussing the research on taro and its four major viruses (Dasheen mosaic virus, Taro bacilliform virus, Colocasia bobone disease virus, and Taro vein chlorosis virus) and a relatively new one (Taro bacilliform CH virus), this paper explores the details of each virus by examining their characteristics and highlighting information that could be used to mitigate taro infections and disease management.