Thursday, October 07, 2010

Tax and developing countries: more research required

An interesting new note from the World Bank, on taxation in developing countries. TJN wouldn't necessarily agree with all of it, but it contains many useful insights.

The key quote is probably this one:
Perhaps the strongest and most relevant policy conclusion one can draw from an examination of the extensive empirical and theoretical literature on the links between taxation and economic development is simply that we do not yet understand much about this issue in general."
Memo to those interested in the affairs of developing countries: pile into tax.


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