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Tax Compliance Attitudes in Africa: Does Foreign Aid Promote Human Development? Evidence from South Asian Countries

Author

Listed:
  • DASH , RANJAN KUMAR

    (Symbiosis International (Deemed University))

  • GUPTA, DEEPA JITENDRA

    (Symbiosis International (Deemed University))

Abstract

This research examines the efficacy of foreign aid in promoting human development in South Asian countries from 1990 to 2019. The study uses panel data analysis (cointegration, causality, and the GMM-system model) to assess the efficacy of foreign aid on human development. The study also examines the role of the conditioning factor in the interplay between aid and investment. Overall, the findings of this paper show that the effects of aid on human development are: directly negative and indirectly positive for three channels (trade, infrastructure, and corruption). Further, the study finds one-way causality from human development to foreign aid, indicating that higher human development attracts higher aid, not vice-versa. Therefore, by following open oriented trade regime, improving infrastructure facilities, and reducing corruption, aid effectiveness could be enhanced for South Asian countries.

Suggested Citation

  • Dash , Ranjan Kumar & Gupta, Deepa Jitendra, 2023. "Tax Compliance Attitudes in Africa: Does Foreign Aid Promote Human Development? Evidence from South Asian Countries," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(3), pages 111-130, September.
    • Handle: RePEc:ris:jecdev:0067
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    More about this item

    Keywords

    Aid; HDI; South Asia; Panel Data; Causality;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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