Inflation, External Debt, and Fiscal Mobilization in Morocco: The Transmission Channels of Devaluation and the Inflationary Past

Asian Economic and Financial Review

article

Salah Eddine Salhi¹  Sara El Aboudi² 

[1] Faculty of Law, Economics and Social Sciences, Souissi Mohammed V University;Organizational Management Sciences Lab National School of Business and Management Ibn Tofail University

关键词: Inflation;    External debt;    Currency devaluation;    Inflationary past;    Fiscal mobilization;    GMM.;   

DOI  :  10.18488/journal.aefr.2021.117.545.562

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This work seeks to empirically assess the effects of inflation and external debt on Morocco's tax revenue mobilization. The study also discusses the moderating effect of devaluation and the inflationary past in the relationship between debt and tax mobilization. The study covers the period from1985- to 2019. The results of the modeling, using the generalized method of moments (GMM), show that inflation has a negative impact on the tax structure. This impact is due to low inflation, which hampers economic activity and leads to a loss of revenue for the government. Similarly, external debt has been shown to negatively impact domestic tax revenues and has a positive impact on trade taxes. Also, the estimation results assert that external indebtedness in interaction with inflation reduces the amount of tax revenue. The low level of inflation does not allow for debt repayment and the generation of tax revenues from it. Finally, the study reveals that external debt, in interaction with devaluation periods, positively impacts tax revenues. The study concludes that good inflation and productive debt allow for a revival of economic activity, and consequently, increased mobilization of tax revenues. The fight against devaluation periods is also an important transmission channel in the relationship between external debt and tax collection.

【 授权许可】

CC BY