Aid for Trade and Trade Tax Revenues: A panel Study for the South Asian countries

Abstract

This thesis assesses whether in the Aid for Trade allocation decisions of donors to the South Asian countries, the motive to compensate for international trade tax revenue losses is present or not. In the absence of this motive, the recipient countries are likely to face a binding revenue constraint for their economic development and growth in the short to medium terms. However, even if trade liberalization reforms are associated with some fiscal losses in short to medium term for the South Asian countries, but it could be possible that in the long run, if trade liberalization policies are successful then it can act as an engine of growth and development for the region. But this success of trade liberalization reforms heavily dependent on the development of social sector and institutional quality in the region. Key