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Do Natural Disasters Hurt Tax Resource Mobilization?

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  • Eric Nazindigouba Kere

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Somlanaré Romuald Kinda

    (UJZK - Université Joseph Ki-Zerbo)

  • Rasmané Ouedraogo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

According to several reports, natural disasters and climate change will intensify and dampen development if appropriate measures are not implemented. Our paper contributes to this literature and analyzes the impact of natural disasters on domestic resource mobilization in developing countries. Using propensity score matching estimators over the period of 1980-2012 for 120 developing countries, our results conclude that government revenues decrease in the aftermath of natural disasters. Moreover natural disasters that occur in border countries have a negative impact on government revenues of neighbor countries. However, the adverse effects of natural disasters are dampened in countries with high level of resilience capacity and stronger governance.

Suggested Citation

  • Eric Nazindigouba Kere & Somlanaré Romuald Kinda & Rasmané Ouedraogo, 2015. "Do Natural Disasters Hurt Tax Resource Mobilization?," CERDI Working papers halshs-01242968, HAL.
    • Handle: RePEc:hal:cdiwps:halshs-01242968
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01242968v1
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    Cited by:

    1. Sungyoon Lee & Jennifer Dodge & Gang Chen, 2022. "The cost of social vulnerability: an integrative conceptual framework and model for assessing financial risks in natural disaster management," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 114(1), pages 691-712, October.
    2. Preeya Mohan & Eric Strobl, 2021. "The impact of tropical storms on tax revenue," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 472-489, April.

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    More about this item

    Keywords

    Natural disasters; Tax revenue; Resilience capacity; Corruption.;
    All these keywords.

    JEL classification:

    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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