Arbeitspapier
Does aid fragmentation affect tax revenue dynamics in developing countries? Observations with new tax data
There exists a burgeoning empirical literature on the impact of aid fragmentation on development outcomes in aid-receiving countries, with it being widely recognized that aid fragmentation is deleterious. This paper adds to the existing literature by estimating the impact of aid fragmentation on tax revenue mobilization in developing countries. Drawing on the popular system generalized method of moments technique to counter endogeneity issues, this study focuses on a sample of 90 developing countries covering the period from 2000 to 2020. We show that aid fragmentation, measured by the Herfindahl index, has a significant negative impact on recipient countries' tax revenue ratios, an impact that is not mitigated by the level of institutional quality. The paper also explores the impact of aid fragmentation on tax structure and finds convincing evidence that direct taxes, particularly corporate income taxes, are the most affected. Value-added tax is the only indirect tax affected by aid fragmentation.
- ISBN
-
978-92-9267-233-1
- Sprache
-
Englisch
- Erschienen in
-
Series: WIDER Working Paper ; No. 2022/99
- Klassifikation
-
Wirtschaft
Foreign Aid
Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid
- Thema
-
aid fragmentation
Herfindahl index
tax revenue
institutional quality
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Compaoré, Ali
Tagem, Abrams M. E.
- Ereignis
-
Veröffentlichung
- (wer)
-
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
- (wo)
-
Helsinki
- (wann)
-
2022
- DOI
-
doi:10.35188/UNU-WIDER/2022/233-1
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Compaoré, Ali
- Tagem, Abrams M. E.
- The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Entstanden
- 2022
Ähnliche Objekte (12)
How Corporate Tax Competition Reduces Personal Tax Revenue
Income tax evasion: Tax elasticity, welfare, and revenue
Financial inclusion and tax revenue
Should high tax countries pursue revenue neutral ecological tax reform
Tax policy: The fiscal revenue effects of international tax planning
How do tax technology and controversy expertise affect tax disputes?
Does payroll tax affect firm behaviour?
Does Tax Evasion Affect Economic Crime?
Should High-tax Countries Pursue Revenue-neutral Ecological Tax Reforms? A Comment
Decomposing Revenue Effects of Tax Evasion, Base Broadening and Tax Rate Reduction
The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions
Technical Appendix: Tax Laws and Revenue Effects
How Corporate Tax Competition Reduces Personal Tax Revenue
Income tax evasion: Tax elasticity, welfare, and revenue
Financial inclusion and tax revenue
Should high tax countries pursue revenue neutral ecological tax reform
Tax policy: The fiscal revenue effects of international tax planning
How do tax technology and controversy expertise affect tax disputes?
Does payroll tax affect firm behaviour?
Does Tax Evasion Affect Economic Crime?
Should High-tax Countries Pursue Revenue-neutral Ecological Tax Reforms? A Comment
Decomposing Revenue Effects of Tax Evasion, Base Broadening and Tax Rate Reduction
The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions
Technical Appendix: Tax Laws and Revenue Effects
How Corporate Tax Competition Reduces Personal Tax Revenue
Income tax evasion: Tax elasticity, welfare, and revenue
Financial inclusion and tax revenue
Should high tax countries pursue revenue neutral ecological tax reform
Tax policy: The fiscal revenue effects of international tax planning
How do tax technology and controversy expertise affect tax disputes?
Does payroll tax affect firm behaviour?
Does Tax Evasion Affect Economic Crime?
Should High-tax Countries Pursue Revenue-neutral Ecological Tax Reforms? A Comment
Decomposing Revenue Effects of Tax Evasion, Base Broadening and Tax Rate Reduction
The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions