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Tax Revenue Effort and Aid in Fragile States: The Case of the Comoros

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dc.contributor.authorDiaz-Sanchez, Jose L.
dc.contributor.authorTagem, Abrams
dc.contributor.authorMota, Joana
dc.date.accessioned2021-02-18T14:46:51Z
dc.date.available2021-02-18T14:46:51Z
dc.date.issued2021-02
dc.description.abstractThis paper assesses the impact of aid on tax revenue effort in the context of a fragile state, using the case of the Comoros. The paper estimates a fiscal response model within a cointegrated vector autoregressive framework with annual data for the Comoros’ post-independence period (1984-2017). The data suggest that grants and tax revenue in the Comoros had a significant negative relationship in the long run that remained stable throughout the post-independence period. Grants are a politically less costly source of finance, reducing the urgency of fragile states’ fiscal planners to expend their reduced political capital and administrative capacity on tax collection reforms. This effect may be amplified by the large one-off budget support grants, which represent a windfall of resources to the Comoros from bilateral partners, which often may have stopped tax reform initiatives. Although the paper does not suggest a decrease in aid to fragile states, as aid constitutes an essential support for these countries, being aware of this historically negative relationship is an important step to ensure that the government’s tax revenue efforts do not slow down following, for instance, large one-off unconditional budgetary support. In addition, the paper argues that prioritizing conditional aid, focusing on aid effectiveness, and engaging more resources for capacity-building tax revenue projects and technical assistance could increase the impact of donors’ interventions.en
dc.identifierhttp://documents.worldbank.org/curated/en/604001613577832331/Tax-Revenue-Effort-and-Aid-in-Fragile-States-The-Case-of-the-Comoros
dc.identifier.doi10.1596/1813-9450-9550
dc.identifier.urihttps://hdl.handle.net/10986/35146
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9550
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectTAX REVENUE
dc.subjectFRAGILE STATES
dc.subjectFRAGILITY
dc.subjectAID
dc.subjectTAX DISPLACEMENT
dc.subjectFISCAL RESPONSE
dc.subjectBUDGET SUPPORT
dc.subjectTAX REFORM
dc.titleTax Revenue Effort and Aid in Fragile Statesen
dc.title.subtitleThe Case of the Comorosen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleTax Revenue Effort and Aid in Fragile States: The Case of the Comoros
okr.date.disclosure2021-02-17
okr.date.doiregistration2025-04-10T11:26:36.800116Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/604001613577832331/Tax-Revenue-Effort-and-Aid-in-Fragile-States-The-Case-of-the-Comoros
okr.guid604001613577832331
okr.identifier.doi10.1596/1813-9450-9550
okr.identifier.externaldocumentum090224b0882db3c1_2_0
okr.identifier.internaldocumentum32840735
okr.identifier.reportWPS9550
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/604001613577832331/pdf/Tax-Revenue-Effort-and-Aid-in-Fragile-States-The-Case-of-the-Comoros.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryComoros
okr.statistics.combined1555
okr.statistics.dr604001613577832331
okr.statistics.drstats1001
okr.topicPublic Sector Development::Tax Policy
okr.topicPublic Sector Development::Public Sector Economics
okr.topicConflict and Development::Conflict and Fragile States
okr.topicMacroeconomics and Economic Growth::Development Economics & Aid Effectiveness
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.unitMacroeconomics, Trade and Investment Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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