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Aid, taxes, and government spending: A heterogeneous co-integrated panel analysis

Abrams M.E. Tagem

No wp-2022-107, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: A substantial amount of aid to developing countries is given to the government, or goes through the budget, meaning it should have an impact on government fiscal behaviour (particularly on government spending). The few existing empirical studies on the effects of aid on government spending neglect variable time-series properties, cross-country (recipient) heterogeneity, and the potential for cross-country correlation.

Keywords: Aid; Cross-section dependence; Heterogeneity; Tax revenue; Foreign aid (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-pub
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