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Aid for Trade and trade tax revenues in developing countries

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  • Gnangnon, Sèna Kimm

Abstract

This paper examines whether Aid for Trade (AfT) compensates for the losses of trade tax revenues in developing countries further to the liberalization of their trade regimes. The empirical analysis suggests that unlike other countries, AfT flows to highly AfT-dependent countries are not affected when these countries experience lower trade tax revenue. It would therefore be desirable that donors extend higher AfT to recipient-countries, notably poorest countries when they are confronted with losses in their trade tax revenue. This is particularly important for them given the structural challenges associated with their tax transition reform.

Suggested Citation

  • Gnangnon, Sèna Kimm, 2016. "Aid for Trade and trade tax revenues in developing countries," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 9-22.
  • Handle: RePEc:eee:ecanpo:v:50:y:2016:i:c:p:9-22
    DOI: 10.1016/j.eap.2016.02.002
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    References listed on IDEAS

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    Cited by:

    1. Olga N. Kusakina & Natalia V. Bannikova & Svetlana S. Morkovina & Tatiana N. Litvinova, 2016. "State Stimulation of Development of Small Entrepreneurship in Developing Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 276-284.
    2. repec:ksa:szemle:1720 is not listed on IDEAS
    3. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, Center for Economic and Financial Research (CEFIR).
    4. repec:liu:liucej:v:15:y:2018:i:2:p:249-276 is not listed on IDEAS

    More about this item

    Keywords

    Aid for Trade; Trade tax revenue; Quantile regression approach;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F10 - International Economics - - Trade - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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