Skip to main content

Research Repository

Advanced Search

Aid and domestic resource mobilisation with a focus on sub-Saharan Africa

Morrissey, Oliver

Authors



Abstract

Increasing tax revenues in low income countries is essential to address future development finance requirements. This is particularly important for aid recipients, the focus of this paper. Theory shows that although there are many ways in which aid can have indirect effects on tax revenue, the direct effects arise because aid and tax are alternative sources of revenue and political economy factors influence the choices made by government. Aid may discourage tax effort if viewed as a politically less costly source of revenue. Under different conditions, the policies and reforms associated with aid may increase revenue, through promoting growth, encouraging more efficient tax structures or supporting reforms to tax administration. While cross-country evidence reveals no systematic pattern, country studies show that aid can be associated with administrative and efficiency reforms to increase tax revenue. The conclusion discusses how aid and donors can promote increasing domestic tax revenue.

Journal Article Type Article
Publication Date Mar 1, 2015
Journal Oxford Review of Economic Policy
Print ISSN 0266-903X
Electronic ISSN 0266-903X
Publisher Oxford University Press
Peer Reviewed Peer Reviewed
Volume 31
Issue 3-4
APA6 Citation Morrissey, O. (2015). Aid and domestic resource mobilisation with a focus on sub-Saharan Africa. Oxford Review of Economic Policy, 31(3-4), https://doi.org/10.1093/oxrep/grv029
DOI https://doi.org/10.1093/oxrep/grv029
Keywords Aid, Taxation, Fiscal Response, Tax Reform
Publisher URL https://academic.oup.com/oxrep/article-lookup/doi/10.1093/oxrep/grv029
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

Files

Morrissey_OXREP_2015_accepted.pdf (377 Kb)
PDF

Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





You might also like



Downloadable Citations

;