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Fiscal Composition and Aid Effectiveness: A Political-Economy Model

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  • Paul Mosley

Abstract

In accounting for the rather gloomy trend of the aid effectiveness literature over the last few years, one explanatory strand has been fiscal, suggesting in particular that aid flows in weak states have tended to erode the tax base and the structure of institutions. We pursue this idea, tracing the link from politics to domestic tax effort and then using the influence of this on expenditure to explain the leverage of aid.

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  • Paul Mosley, 2012. "Fiscal Composition and Aid Effectiveness: A Political-Economy Model," WIDER Working Paper Series wp-2012-029, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-029
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2012-029.pdf
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    Cited by:

    1. Paul Mosley, 2012. "The politics of what works for the poor in public expenditure and taxation: a review," Global Development Institute Working Paper Series esid-011-12, GDI, The University of Manchester.

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    Keywords

    Econometric models; Economic assistance and foreign aid; Economic policy; Taxation;
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