Fiscal Composition and Aid Effectiveness: A Political-Economy Model

Paul Mosley

No wp-2012-029, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In accounting for the rather gloomy trend of the aid effectiveness literature over the last few years, one explanatory strand has been fiscal, suggesting in particular that aid flows in weak states have tended to erode the tax base and the structure of institutions. We pursue this idea, tracing the link from politics to domestic tax effort and then using the influence of this on expenditure to explain the leverage of aid.

Keywords: Econometric models; Economic assistance and foreign aid; Economic policy; Taxation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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