{
  "title": "External Private Financing and Domestic Revenue Mobilization: A Dilemma?",
  "publication": "IMF Working Papers, November 8, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2020/11/08/external-private-financing-and-domestic-revenue-mobilization-a-dilemma-49741",
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  "summary": "Domestic revenue mobilization (DRM) is essential for low-income and emerging economies to sustainably finance their development needs and has received increasing attention in recent years.",
  "sections": [
    {
      "heading": "Key question and context",
      "content": "- Domestic revenue mobilization (DRM) is essential for low-income and emerging economies to sustainably finance their development needs.\n- DRM reforms can be slow and carry political costs; countries may turn to donors or private investors to meet spending needs.\n- The study examines whether access to external private financing (bond markets, external commercial loans) undermines efforts to collect tax revenue."
    },
    {
      "heading": "Data and methodology",
      "content": "- Sample: 72 developing countries.\n- Methods: Impact assessment methodology and panel regressions."
    },
    {
      "heading": "Main findings",
      "content": "- No evidence that access to bond markets or external commercial loans undermines countries’ efforts to collect tax revenue.\n- Access to markets has a positive impact on domestic revenue mobilization.\n- Plausible mechanisms:\n  - Private financing must be repaid.\n  - Strong macroeconomic fundamentals are key for maintaining market access.\n- Macroeconomic stability and the strength of institutions matter for domestic revenue mobilization.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2020/11/08/external-private-financing-and-domestic-revenue-mobilization-a-dilemma-49741"
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    "Authors: Hippolyte W. Balima, Deirdre Daly, Boileau Loko",
    "Published: November 8, 2020",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513560397.001",
    "Domestic revenue mobilization (DRM) is essential for low-income and emerging economies to sustainably finance their development needs.",
    "DRM reforms can be slow and carry political costs; countries may turn to donors or private investors to meet spending needs.",
    "The study examines whether access to external private financing (bond markets, external commercial loans) undermines efforts to collect tax revenue.",
    "Sample: 72 developing countries.",
    "Methods: Impact assessment methodology and panel regressions.",
    "No evidence that access to bond markets or external commercial loans undermines countries’ efforts to collect tax revenue.",
    "Access to markets has a positive impact on domestic revenue mobilization.",
    "Plausible mechanisms:",
    "Macroeconomic stability and the strength of institutions matter for domestic revenue mobilization.",
    "**Working Paper**"
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