A Time to Build: Does TA Matter for Revenue Mobilization?

Author/Editor:

Ralph Chami ; Elorm Darkey ; Oral Williams

Publication Date:

February 12, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

We use a unique data set for 115 countries, from 2000–18, and 5-year non-overlapping averages to explore the impact of technical assitance on revenue mobilization. To the authors’ knowledge this is the first such effort to determine a direct relationship between technical assistance and the improvement in tax revenues. The paper finds that technical assistance significantly and positively increases tax revenues. Both income per capita and openness were found to positively improve the tax ratio in line with findings in the literature. Dynamic estimations also uncovered a long-run relationship among technical assistance, income per capita, openness, and tax revenues. This result further underscores that it takes time to build capacity and institutional resilience.

Series:

Working Paper No. 2021/035

Frequency:

regular

English

Publication Date:

February 12, 2021

ISBN/ISSN:

9781513569468/1018-5941

Stock No:

WPIEA2021035

Format:

Paper

Pages:

16

Please address any questions about this title to publications@imf.org