Do Natural Disasters Hurt Tax Resource Mobilization?

Eric Nazindigouba Kere (1) , Somlanaré Romuald Kinda (2) , Rasmané Ouedraogo (1)

1 CERDI - Centre d'Études et de Recherches sur le Développement International
2 UJZK - Université Joseph Ki-Zerbo [Université de Ouagadougou, Burkina Faso]

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.

Keywords: Natural disasters; Tax revenue; Resilience capacity; Corruption.

Domains: Economics and Finance

Eric Nazindigouba Kere, Somlanaré Romuald Kinda, Rasmané Ouedraogo. Do Natural Disasters Hurt Tax Resource Mobilization?. 2015. ⟨halshs-01242968⟩