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Aid, taxes, and government spending: A heterogeneous co-integrated panel analysis

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  • Abrams M.E. Tagem

Abstract

A substantial amount of aid to developing countries is given to the government, or goes through the budget, meaning it should have an impact on government fiscal behaviour (particularly on government spending). The few existing empirical studies on the effects of aid on government spending neglect variable time-series properties, cross-country (recipient) heterogeneity, and the potential for cross-country correlation.

Suggested Citation

  • Abrams M.E. Tagem, 2022. "Aid, taxes, and government spending: A heterogeneous co-integrated panel analysis," WIDER Working Paper Series wp-2022-107, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-107
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    References listed on IDEAS

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    More about this item

    Keywords

    Aid; Cross-section dependence; Heterogeneity; Tax revenue; Foreign aid;
    All these keywords.

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