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

_IMF Working Papers, February 12, 2021_

## Source details

**Canonical URL:** [A Time to Build: Does TA Matter for Revenue Mobilization?](https://www.imf.org/en/publications/wp/issues/2021/02/12/a-time-to-build-does-ta-matter-for-revenue-mobilization-50080)

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## Bibliographic details
- Authors: Ralph Chami, Oral Williams
- Published: February 12, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513569468.001

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### Summary findings
- The paper uses a unique data set covering 115 countries, from 2000–18, and 5-year non-overlapping averages to explore the impact of technical assistance (TA) on revenue mobilization.
- To the authors’ knowledge this is the first effort to determine a direct relationship between technical assistance and improvement in tax revenues.
- Key empirical result: technical assistance significantly and positively increases tax revenues.
- Both income per capita and openness were found to positively improve the tax ratio, consistent with prior literature.
- Dynamic estimations uncovered a long-run relationship among technical assistance, income per capita, openness, and tax revenues, underscoring that it takes time to build capacity and institutional resilience.

### Data and methods
- Sample: 115 countries.
- Time span: 2000–18.
- Temporal aggregation: 5-year non-overlapping averages.
- Estimation approach: static and dynamic estimations, including error correction and long-run coefficient analysis (as indicated by keywords such as error correction coefficient and long-run coefficient).

### Key statistics and technical terms (preserved as in source)
- Countries: 115
- Period: 2000–18
- Temporal averaging: 5-year non-overlapping averages
- Subject keywords: Corruption, Estimation techniques, Income, Revenue administration, Tax administration core functions
- Methodological/technical keywords: error correction coefficient, long-run coefficient, order of magnitude, tax ratio, tax revenue variable

### Policy implications and interpretation
- Technical assistance is an effective tool for revenue mobilization, producing significant and positive increases in tax revenues.
- Improvements in income per capita and greater openness are associated with higher tax ratios, suggesting complementary channels for revenue gains.
- The identified long-run relationship indicates that capacity building and institutional reforms take time; short-term evaluations may understate TA’s full impact.

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## Content in this bundle

- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2021/02/12/a-time-to-build-does-ta-matter-for-revenue-mobilization-50080_