This paper addresses the effect of aid loans and grants on tax effort using data for 82 developing countries over 1970–2005. We find no robust evidence for a negative effect of aid (grants or loans) on the tax/GDP ratio, other than a contemporaneous correlation, but find some evidence that the...

Economic theory predicts that wage and income levels will be higher in those developing countries to which business travel and telecommunication from developed countries is cheaper and easier. Cross-country regression analysis, using data from the World Tourism Organisation and the method of...