Trade Liberalization and Tax Revenue Mobilization in ECOWAS Countries
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Date
2021-04-19
Authors
Ndoye, Mamadou Laye
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
This study is an empirical assessment of the effects of trade liberalization on total tax
revenues and their various components in the countries of the Economic Community
of West African States (ECOWAS). The study uses data from a sample of 13 countries
and covering the period 1990-2016. Using a fixed effects model, the study found that
despite the decline in customs revenues caused by trade liberalization, this enabled
the countries in the sample to increase both the domestic revenues and the total tax
revenues. The study therefore recommends that the governments of the ECOWAS
countries should adopt a policy of low tariffs and openness to international trade
to strengthen their mobilization of domestic tax revenues. However, this trade
liberalization policy must be accompanied with an appropriate macroeconomic policy
capable of ensuring a stable economic environment, and good governance, if trade
liberalization has to be credible as a policy.
Description
Keywords
Tax revenues, , Trade liberalization, , Panel data, , ECOWAS