{
  "title": "Foreign Aid and Revenue: Still a Crowding Out Effect?",
  "publication": "IMF Working Papers, July 1, 2012",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/foreign-aid-and-revenue-still-a-crowding-out-effect-26085",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Overview and study scope",
      "content": "- Authors: Ernesto Crivelli, Sanjeev Gupta, Priscilla S Muthoora, Dora Benedek\n- Publication date: July 1, 2012\n- Coverage: 118 countries for the period 1980 - 2009\n- Publication: IMF Working Papers, Working Paper No. 2012/186\n- Pages: 33\n- Volume: 2012\n- Issue: 186\n- DOI: https://doi.org/10.5089/9781475505344.001\n- ISBN: 9781475505344\n- ISSN: 1018-5941"
    },
    {
      "heading": "Main findings on aid and domestic tax revenues",
      "content": "- The 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.\n- Overall result: a negative association between net Official Development Assistance (ODA) and domestic tax revenues is supported.\n- The negative association appears to have weakened, reflecting greater efforts at mobilizing domestic revenues in many countries."
    },
    {
      "heading": "Composition of aid matters",
      "content": "- ODA grants are associated with lower domestic tax revenues.\n- ODA loans are not associated with lower domestic tax revenues."
    },
    {
      "heading": "Tax-type specific associations",
      "content": "- Net ODA and grants are negatively associated with:\n  - VAT revenues\n  - Excise tax revenues\n  - Income tax revenues\n- Net ODA and grants are positively associated with:\n  - Trade taxes"
    },
    {
      "heading": "Heterogeneity of effects",
      "content": "- Aid has a particularly strong negative effect on domestic tax revenues in:\n  - Low-income countries\n  - Countries with relatively weak institutions"
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Estimation techniques, Loans, Revenue administration, Taxes on trade, Value-added tax\n- Keywords: administration reform, ODA grant, ODA Loans, tax revenue, trade tax, WP\n\nSource: IMF Working Paper \"Foreign Aid and Revenue: Still a Crowding Out Effect?\", Ernesto Crivelli, Sanjeev Gupta, Priscilla S Muthoora, Dora Benedek, July 1, 2012.\n\n---\n\n Content in this bundle\n\n- Wp12186\n  - Wp12186 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp12186 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/foreign-aid-and-revenue-still-a-crowding-out-effect-26085"
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    "Authors: Ernesto Crivelli, Sanjeev Gupta, Priscilla S Muthoora, Dora Benedek",
    "Published: July 1, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475505344.001",
    "Authors: Ernesto Crivelli, Sanjeev Gupta, Priscilla S Muthoora, Dora Benedek",
    "Publication date: July 1, 2012",
    "Coverage: 118 countries for the period 1980 - 2009",
    "Publication: IMF Working Papers, Working Paper No. 2012/186",
    "Pages: 33",
    "Volume: 2012",
    "Issue: 186",
    "DOI: https://doi.org/10.5089/9781475505344.001",
    "ISBN: 9781475505344",
    "ISSN: 1018-5941",
    "The 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 result: a negative association between net Official Development Assistance (ODA) and domestic tax revenues is supported.",
    "The negative association appears to have weakened, reflecting greater efforts at mobilizing domestic revenues in many countries.",
    "ODA grants are associated with lower domestic tax revenues.",
    "ODA loans are not associated with lower domestic tax revenues.",
    "Net ODA and grants are negatively associated with:",
    "Net ODA and grants are positively associated with:",
    "Aid has a particularly strong negative effect on domestic tax revenues in:",
    "Subject: Estimation techniques, Loans, Revenue administration, Taxes on trade, Value-added tax",
    "Keywords: administration reform, ODA grant, ODA Loans, tax revenue, trade tax, WP",
    "**Wp12186**"
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