Tax Structure in Latin Amercan: Its Impact on the Real Economy

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2014

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Revista de Economía Mundial




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Jorge Martinez et al., « Tax Structure in Latin Amercan: Its Impact on the Real Economy », Revista de Economía Mundial, ID : 10670/1.15cd91...


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In this paper we review the structure of tax systems in Latin America and analyze their impact on the real economy - economic growth, macro-economic stability, and income redistribution. We find that in Latin America relatively higher reliance on direct taxes slows economic growth, although this effect is smaller than in the ‘Rest of the World.’ However, unlike in most other countries, higher reliance on direct taxes in Latin America does not appear to play a significant role in dampening economic volatility or in reducing income inequality in the region.

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