## Does conditionality in IMF-supported programs promote revenue reform?

_IMF Working Papers, November 19, 2014_

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## Bibliographic details
- Authors: Ernesto Crivelli, Sanjeev Gupta
- Published: November 19, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484380048.001

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### Summary and main findings
- The paper studies whether revenue conditionality in Fund-supported programs had any impact on the revenue performance of 126 low- and middle-income countries during 1993-2013.
- Results indicate that revenue conditionality had a positive impact on tax revenue.
- The strongest improvement was felt on taxes on goods and services, including the VAT.
- Revenue conditionality matters more for low-income countries, particularly those where revenue ratios are below the group average.
- Revenue conditionality appears to be more effective when targeted to a specific tax.
- These results hold after controlling for potential endogeneity, sample selection bias, and when revenues are adjusted for economic cycle.

### Scope, data, and subjects
- Sample size and period: 126 low- and middle-income countries during 1993-2013.
- Subject tags included in the source: Consumption taxes, National accounts, Personal income, Revenue administration, Tax administration core functions, Taxes, Value-added tax.
- Keywords provided: conditionality dummy, Consumption taxes, Global, IMF conditionality, IMF-supported program, Personal income, revenue collection, revenue conditionality, structural conditionality, Sub-Saharan Africa, Tax administration core functions, tax revenue, tax revenue performance, Value-added tax, WP.

### Methodological notes (as reported)
- The reported results account for:
  - Potential endogeneity.
  - Sample selection bias.
  - Adjustments of revenues for the economic cycle.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-conditionality-in-imf-supported-programs-promote-revenue-reform-42456_