Natural resources governance and tax revenue mobilization in sub saharan Africa: The role of EITIJoseph Mawejje Resources Policy, 2019, vol. 62, issue C, 176-183 Abstract: The resource curse literature suggests that windfall revenues from the exploitation of natural resources have a negative impact on non-resource tax revenues. Consequently, improving governance and transparency in the management of natural resource revenues is considered critical in mitigating the negative outcomes that typify resource-rich countries. This paper investigates whether EITI membership helps countries to offset the negative impact of natural resource dependence on tax revenues in a panel of 31 Sub Saharan African countries with significant natural resource endowments. Using panel fixed effects and dynamic panel GMM econometric methods, results confirm the existence of a negative relationship between revenues from natural resource sectors and tax revenues. Membership to the EITI has had a weak positive effect on non-oil revenue mobilization and only partially offsets the negative impact of natural resources dependence on non-resource tax revenues. These results suggest that while the EITI has had some positive contributions, it is not a panacea for eliminating the tax revenue curse in natural resource rich African countries. Keywords: Natural resources; Resource curse; EITI; Tax revenues; Africa (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:62:y:2019:i:c:p:176-183 DOI: 10.1016/j.resourpol.2019.04.001 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
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