Globalization and Developing Countries - A Shrinking Tax Base?

This paper evaluates the impact of globalization on tax bases of countries at varying stages of development. We see globalization as a process that induces countries to embrace greater trade and financial integration. This in turn should shift their tax revenue from quot;easy to collectquot; taxes (tariffs and seigniorage) towards quot;hard to collectquot; taxes (value added and income taxes). We find that trade and financial openness have a positive association with the quot;hard to collectquot; taxes, and a negative association with the quot;easy to collectquot; taxes