Country size and taxation in developing countries

This article addresses the issue of size and taxation in poor countries. The author uses three criteria of size to determine two groups of very large and very small countries. An analysis of tax data for the two groups reveals marked differences in the choice of fiscal instruments, and the distribution of tax revenue as well as higher tax ratios for the small states. Evidence both from the literature and this study suggests that smallness gives rise to features which both facilitate and necessitate higher tax collections.