This paper investigates the relationship between tax structures and economic growth in a panel of developed and developing countries. In order to raise revenue, low-income countries have historically relied more heavily on international trade taxes, whilst richer nations employ comparatively...

This paper analyzes the optimal tax system consisting of the tax rate and the capacity of the tax administration. I challenge the conventional wisdom that tax rates and tax administrations' capacity are complements showing that their relationship depends on a country's level of development....

Issues of taxation and development, which have long been a central concern of the IMF, have attracted wider and renewed interest in the last few years. This paper reflects on three broad lessons of experience: that developing countries differ vastly in tax matters, and in ways that are less than...