Tax Reform, Trade Openness and Export Product Diversification in Developing Countries

2020 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Tax Reform ◽  
Trade Openness ◽  
Developed Countries ◽  
Product Diversification ◽  
Policy Implications ◽  
Tax Structure ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

Abstract This article considers the effect of tax reform on export product diversification in developing countries, including through the trade openness channel. Tax reform involves the convergence of a developing country's tax structure towards the tax structure of developed countries. The analysis uses a sample of 112 developing countries over the period 1980–2014 and shows that tax reform exerts a positive effect on export product diversification, with least developed countries enjoying a higher positive effect than other countries in the full sample. Furthermore, the higher the degree of trade openness, the greater is the magnitude of the positive effect of tax reform on export product diversification. These outcomes have important policy implications.

scholarly journals Export Diversification and Ecological Footprint: A Comparative Study on EKC Theory among Korea, Japan, and China

2018 ◽  
Vol 10 (10) ◽  
pp. 3657 ◽  
Author(s):  
Hongbo Liu ◽  
Hanho Kim ◽  
Shuanglu Liang ◽  
Oh-Sang Kwon
Keyword(s):  
Economic Development ◽  
Environmental Kuznets Curve ◽  
Ecological Footprint ◽  
Developed Countries ◽  
Product Diversification ◽  
Policy Implications ◽  
Export Market ◽  
Kuznets Curve ◽  
Export Product ◽  
Export Product Diversification

This study examines the Environmental Kuznets Curve (EKC) hypothesis by adopting a country’s ecological footprint as an indicator of environmental degradation in three East Asian countries: Japan, Korea, and China. During the development process, countries intend to balance between stabilizing export demand and maintaining sustainable economic improvement in the context of deteriorating global warming and climate change. The Environmental Kuznets Curve (henceforth, EKC) was originally developed to estimate the correlation between environment condition and economic development. In this paper, we started from the EKC model and adopted an Error Correction Methodology (henceforth, ECM) to estimate the EKC relationships in Japan, Korea (two developed countries), and China (a developing country) over the period of 1990 to 2013. Besides this, instead of only using Gross Domestic Product (henceforth, GDP), two subdivisions of trade diversification—export product diversification and export market diversification—are introduced as proxy variables for economic development in rectification of the EKC. The results demonstrate that both Korea and Japan satisfy the EKC theory by demonstrating an inverted U-shaped relationship between economic development and ecological footprint, while analysis based on data from China does not display the same tendency. For both export product diversification and market diversification, the more diversified the country’s export is, the bigger its ecological footprint. The policy implications of this econometric outcome are also discussed.

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

2020 ◽  
Vol 11 (01) ◽  
pp. 2050001 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Tax Reform ◽  
Trade Openness ◽  
Development Aid ◽  
Tax Revenue ◽  
Tax Structure ◽  
Empirical Results ◽  
Positive Effect

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.

Effect of Export Upgrading on Financial Development

2019 ◽  
Vol 10 (03) ◽  
pp. 1950012 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Quality Improvement ◽  
Product Quality ◽  
Financial Development ◽  
Developed Countries ◽  
Product Diversification ◽  
Least Developed Countries ◽  
Product Quality Improvement ◽  
Export Product ◽  
Export Product Diversification

Using a panel dataset comprising 137 countries (both developed and developing countries) over the period 1970–2010, this paper has examined the effect of export upgrading (i.e., export product diversification and export product quality improvement) on financial development. The findings suggest that export product diversification and export product quality improvement influence positively and significantly financial development in high income countries (HICs) and developing countries alike. However, for least developed countries (LDCs), export product diversification promotes financial development, but export product quality improvement exerts a negative effect on financial development.

Impact of export product concentration on social protection expenditure

2020 ◽  
Vol 47 (3) ◽  
pp. 649-669
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Social Protection ◽  
Product Diversification ◽  
Product Concentration ◽  
Content Type ◽  
The Impact ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

PurposeThis study investigates empirically the impact of export product concentration (or diversification) on social protection expenditure in both developed and developing countries. The analysis further explores whether this effect depends on countries' degree of openness to international trade.Design/methodology/approachThe analysis has relied on an unbalanced panel data set comprising 112 countries over the period 1980–2010 and used the two-step system generalized methods of moments (GMM) estimator as the econometric approach.FindingsThe empirical analysis conveys two messages. First, low-income countries experience a positive effect of export product concentration on social protection expenditure, while for relatively advanced economies, export product diversification positively influences social protection expenditure. Second, countries that further open up their economies to international trade experience a positive effect of export product diversification on social protection expenditure, with the magnitude of this impact increasing as the degree of openness rises.Research limitations/implicationsThese findings highlight the relevance of export product diversification for social protection expenditure in both developed and developing countries, notably in the context of greater trade openness.Practical implicationsThe diversification of export products is one means for developed and developing countries alike to increase the scope for social protection expenditure.Originality/valueTo the best of the authors' knowledge, this topic had not been addressed.

Multilateral Trade Liberalization and Democracy: Does Export Product Diversification Matter?

2020 ◽  
pp. 2150002
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Trade Liberalization ◽  
Product Diversification ◽  
Policy Implications ◽  
Multilateral Trade ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
Multilateral Trade Liberalization ◽  
High Degree ◽  
Export Product ◽  
Export Product Diversification

This paper explores the effect of multilateral trade liberalization (MTP) on democracy, using a set of 148 countries over the period 1996–2016. In particular, it investigates whether this effect depends on countries’ level of export product concentration. The analysis shows that MTP promotes democracy only when it reaches a certain threshold. Furthermore, MTP promotes democracy in countries that enjoy a high degree of export product diversification, including away from primary products, or in those with low dependence on natural resource rents. These findings have important policy implications.

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