Governance and tax revenue: does foreign aid matter?

IF 2.7 4区管理学 Q2 PUBLIC ADMINISTRATION

International Review of Administrative Sciences Pub Date : 2021-12-06 DOI:10.1177/00208523211056071

Jun Wen, Umer Farooq, M. Tabash, G. E. El Refae, B. Subhani

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引用次数: 3

Abstract

This study seeks to explores the relationship among governance, foreign aid, and tax revenue. A common notion on governance is that it is a multifaceted factor, it may affect from other factor that is foreign aid. Foreign aid can hamper the governance situation and thus can reduce tax collection. To test these theoretical assumptions, we collected the numerical data from Asian economies for the years 2001–2019 and employed the panel FMOLS (fully modified ordinary least square) test to estimate the regression. The empirical findings first reveal that governance and foreign aid have a positive association with tax revenue in the long run. However, a negative trend in tax collection was observed following the interaction of foreign aid and governance. Foreign aid deteriorates the governance situation, which has a negative spillover impact on tax revenue. Our empirical analysis suggests that policy officials should focus on exercising governance and foreign aid effectiveness to meet the objective of more tax collection. Points for practitioners Policy officials should focus on better governance exercises. They should carefully decide on the volume of foreign aid receipts. However, if it becomes necessary to receive foreign aid, then they should focus on aid effectiveness. Such steps can benefit the practitioners to collect more tax.

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治理和税收：外国援助重要吗？

本研究旨在探讨治理、对外援助和税收之间的关系。关于治理的一个常见概念是，治理是一个多方面的因素，它可能受到外国援助等其他因素的影响。外国援助可能会阻碍治理状况，从而减少税收。为了检验这些理论假设，我们收集了2001-2009年亚洲经济体的数字数据，并采用面板FMOLS（完全修正的普通最小二乘法）检验来估计回归。实证结果首先表明，从长远来看，治理和对外援助与税收呈正相关。然而，在外国援助和治理相互作用之后，税收出现了负面趋势。外国援助恶化了治理状况，对税收产生了负面的溢出影响。我们的实证分析表明，政策官员应该专注于行使治理和对外援助的有效性，以实现更多税收的目标。从业者要点政策官员应专注于更好的治理工作。他们应该仔细决定外国援助的收入数额。然而，如果有必要接受外国援助，那么他们应该关注援助的有效性。这些措施有利于从业者征收更多税款。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Administrative Sciences PUBLIC ADMINISTRATION-

CiteScore

6.10

自引率

4.30%

发文量

期刊介绍： IRAS is an international peer-reviewed journal devoted to academic and professional public administration. Founded in 1927 it is the oldest scholarly public administration journal specifically focused on comparative and international topics. IRAS seeks to shape the future agenda of public administration around the world by encouraging reflection on international comparisons, new techniques and approaches, the dialogue between academics and practitioners, and debates about the future of the field itself.