Internet and the structure of public revenue: resource revenue versus non-resource revenue

Abstract

This paper examines whether the Internet has led to a shift from reliance on resource revenue towards progressive reliance on non-resource revenue, which is ultimately a sustainable source of public revenue. The analysis has been carried out using a sample of 99 countries, including both developed and developing countries, over 1995–2015. Empirical results obtained from the use of the two-step system GMM approach suggest that the Internet induces a change in the structure of public revenue, in particular from resource revenue towards non-resource revenue. In addition, this effect is higher for less advanced countries than for more advanced economies. Thus, the Internet could be a powerful tool for governments to reduce their dependence on resource revenue, in particular in resource-rich countries.