Technical assistance, consumption tax nexus: taking a deeper dive

The article extends earlier research that demonstrated that technical assistance positively improves tax revenues. We find that technical assistance significantly and positively increases Value Added Tax (VAT) revenues as a share of GDP using a sample of 103 countries. The VAT tax ratio on average increases by about 1% for a 10% increase in the volume of technical assistance. The degree of openness also contributed to the increase in the VAT tax ratio.