MIGRANT REMITTANCES AND TAX MOBILIZATION IN MOROCCO : THE TRANSMISSION CHANNELS OF THE VALUE-ADDED TAX AND INSTITUTIONAL QUALITY
This paper empirically assesses remittances' effect on tax mobilization in Morocco. The study also addresses the role of VAT adoption and institutional quality as channels of transmission of the said effect. The estimates cover the period 1985-2019. The Generalized Method of Moments (GMM) modeling results show that migrant remittances positively influence consumption tax mobilization, including VAT and foreign trade revenues. On the other hand, remittances have a negative impact on income taxes. In interaction with the VAT tax reform variable, remittances allow for the collection of consumption taxes, mainly import VAT. However, the impact of this interaction negatively affects the income tax base. Finally, the moderating effect of institutional quality indicates that migrant remittances cause tax demobilization.
Remittances ; Tax Mobilization ; Value-Added Tax ; Institutional Quality ; GMM. JEL Classification : F24, H20, D02