Arbeitspapier

The economics and politics of foreign aid and domestic revenue

The main argument of this paper is that there is considerable heterogeneity in the way aid can shape tax performance in developing countries: through behavioural effects, donor conditionality, recipient policy reform and technical assistance; and these effects are country-specific. We investigate these effects by applying the dynamic Common Correlated Effects Mean Group estimator to a dataset comprising 84 developing countries from 1980 to 2013. The following results ensued: aid and taxes comprise an equilibrium relation, with a positive long-run association between aid and taxes; causality runs from aid to taxes, suggesting that on average, changes in aid induce permanent changes in taxes.

ISBN
978-92-9256-406-3
Sprache
Englisch

Erschienen in
Series: WIDER Working Paper ; No. 2017/180

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Fiscal Policy
Foreign Aid
Fiscal and Monetary Policy in Development
Thema
aid
taxation
tax reform
cointegration
common factor models

Ereignis
Geistige Schöpfung
(wer)
Tagem, Abrams M. E.
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2017

DOI
doi:10.35188/UNU-WIDER/2017/406-3
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Tagem, Abrams M. E.
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2017

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