The economics and politics of foreign aid and domestic revenue

Abrams M.E. Tagem

No wp-2017-180, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: 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.

Keywords: Aid; Taxation; Tax reform; Co-integration; Common factor models (search for similar items in EconPapers)
Date: 2017
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