IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2003-167.html
   My bibliography  Save this paper

Diamond Smuggling and Taxation in Sub-Saharan Africa

Author

Listed:
  • Mr. Matthias Vocke
  • Nienke Oomes

Abstract

This paper provides an overview of diamond mining in sub-Saharan African countries, and explores the reasons for substantial differences in their tax rates and fiscal revenues from the sector, which mainly arise from differences in the incentives for smuggling. In a theoretical model, we show that optimal diamond tax rates increase with the degree of competition among diamond buyers, as well as with the corporate share of diamond production, which is confirmed by the data. We then discuss policies to increase revenue, including by enhancing mining productivity, stimulating the exploration of new areas, reducing barriers to entry, and attracting investment into value-adding downstream operations.

Suggested Citation

  • Mr. Matthias Vocke & Nienke Oomes, 2003. "Diamond Smuggling and Taxation in Sub-Saharan Africa," IMF Working Papers 2003/167, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2003/167
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=16812
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ibrahim A. Onour, 2018. "Do Political Internal Unrest and Smuggling of Precious Metals are Associated? Evidence from a Conflict Country," International Journal of World Policy and Development Studies, Academic Research Publishing Group, vol. 4(1), pages 1-5, 01-2018.
    2. International Monetary Fund, 2005. "Democratic Republic of the Congo: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2005/373, International Monetary Fund.
    3. Hilson, Gavin & Hilson, Abigail & Maconachie, Roy, 2018. "Opportunity or necessity? Conceptualizing entrepreneurship at African small-scale mines," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 286-302.
    4. Debora L. Spar, 2006. "Markets: Continuity and Change in the International Diamond Market," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 195-208, Summer.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2003/167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.