Foreign Aid and Revenue - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Foreign Aid and Revenue write by Ms.Dora Benedek. This book was released on 2012-07-01. Foreign Aid and Revenue available in PDF, EPUB and Kindle. This paper reexamines the relationship between aid and domestic tax revenues using a more recent and comprehensive dataset covering 118 countries for the period 1980 - 2009. Overall, our results support earlier findings of a negative association between net Official Development Assistance (ODA) and domestic tax revenues, but this relationship appears to have weakened in reflection of greater efforts at mobilizing domestic revenues in many countries. The composition of net ODA matters: ODA grants are associated with lower revenues, while ODA loans are not. The paper further finds that net ODA and grants are negatively associated with VAT, excise and income tax revenues, but have a positive relationship with trade taxes. Aid has a particularly strong negative effect on domestic tax revenues in low-income countries and in countries with relatively weak institutions.
Foreign Aid and Revenue Response
Foreign Aid and Revenue Response - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Foreign Aid and Revenue Response write by Mr.Alexander Pivovarsky. This book was released on 2003-09-01. Foreign Aid and Revenue Response available in PDF, EPUB and Kindle. This paper examines the revenue response to inflows of foreign aid in 107 countries during the period 1970–2000, In particular, it investigates whether the impact of aid on the revenue effort depends on the composition of aid (grants vis-à-vis loans). The results indicate that while concessional loans are associated with higher domestic revenue mobilization, the opposite is true of grants. On average, the dampening effect of grants on the revenue effort is modest. However, for those countries plagued by high levels of corruption, our results suggest that the decline in revenues completely offsets the increase in grants. The results are robust to various specifications.
Does Conditionality Mitigate the Potential Negative Effect of Aid on Revenues?
Does Conditionality Mitigate the Potential Negative Effect of Aid on Revenues? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Does Conditionality Mitigate the Potential Negative Effect of Aid on Revenues? write by Ernesto Crivelli. This book was released on 2016-07-21. Does Conditionality Mitigate the Potential Negative Effect of Aid on Revenues? available in PDF, EPUB and Kindle. This paper assesses whether conditionality in IMF-supported programs has helped offset the potential negative effect of foreign aid on tax revenues. The analysis—carried out on panel data covering 1993–2012 for 111 low- and middle-income countries—shows that growing use of revenue conditionality by low-income countries partially offsets the depressing effect of foreign grants on tax revenue, particularly on taxes on goods and services. The impact of conditionality is strong in countries where aid dependence is high and where institutions are strong, suggesting that revenue conditionality cannot substitute for weak institutions in mitigating the negative effect of aid on tax revenue collection.
Foreign Aid and Revenue Response Does the Composition of Aid Matter?
Foreign Aid and Revenue Response Does the Composition of Aid Matter? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Foreign Aid and Revenue Response Does the Composition of Aid Matter? write by Sanjeev Gupta. This book was released on 2006. Foreign Aid and Revenue Response Does the Composition of Aid Matter? available in PDF, EPUB and Kindle. This paper examines the revenue response to inflows of foreign aid in 107 countries during the period 1970-2000. In particular, it investigates whether the impact of aid on the revenue effort depends on the composition of aid (grants vis-agrave;-vis loans). The results indicate that while concessional loans are associated with higher domestic revenue mobilization, the opposite is true of grants. On average, the dampening effect of grants on the revenue effort is modest. However, for those countries plagued by high levels of corruption, our results suggest that the decline in revenues completely offsets the increase in grants. The results are robust to various specifications.
Foreign aid and government fiscal behavior in Zambia
Foreign aid and government fiscal behavior in Zambia - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Foreign aid and government fiscal behavior in Zambia write by Jones Bowa. This book was released on 2020-09-29. Foreign aid and government fiscal behavior in Zambia available in PDF, EPUB and Kindle. Master's Thesis from the year 2016 in the subject Economics - Case Scenarios, grade: Great Distinction, University of Antwerp (Institute of Development Policy and Management (IOB)), language: English, abstract: The paper investigates the relationship between foreign aid and government fiscal behavior. An overview of the global trend of foreign aid flows over the last few decades is provided, as well as literature and research on fiscal response studies that have aimed to examine how these aid flows influence the fiscal decisions of aid recipient governments. The paper assesses the impact of foreign aid flows on fiscal aggregates, taking into focus the case of Zambia. In particular, the paper goes into detail examining how government investment, consumption, revenue, and domestic borrowing are associated with both aggregated and disaggregated aid. The paper adopts a quantitative approach in its analysis. A Vector Error Correction approach was used to estimate the relationship between foreign aid and fiscal aggregates data for Zambia over the period 1970-2014. The econometric estimation used annual data and analyzed both short-run and long-run effects. The following were the findings: Foreign aid flows were found to be positively associated with government investment, consumption, and domestic borrowing. While government revenue was negatively associated with foreign aid. In the short-run, it was observed that grants were used to reduce the level of the country’s domestic debt stock. Whereas, net foreign loans were seen as a substitute for domestic revenues and were used to finance the budget deficit. The paper concluded by providing a number of recommendations that suggested improvement in government’s revenue mobilization efforts, effective management of the country’s domestic debt, and the deliberate action to direct revenue resources towards investment expenditure. In order to achieve sustained growth and ensure the effective use of aid, donor partners were recognized as important actors in supporting the government’s fiscal policy direction. There has been high momentum in the scaling up of foreign aid in recent years. The turn of the millennium saw calls by the development community to increase foreign aid to developing countries so as to assist them in attaining the Millennium Development Goals. The mechanisms through which foreign aid flows are transmitted to recipient countries require that the aid resources are channeled through the government. Thus, for foreign aid to have any meaningful impact is highly dependent on how governments respond to inflows of aid.
