The arithmetics and politics of domestic resource mobilization for poverty eradication

2022 ◽  
Vol 149 ◽  
pp. 105691
Author(s):  
Kimberly B. Bolch ◽  
Lidia Ceriani ◽  
Luis F. López-Calva
Author(s):  
Francesco Seatzu

Domestic resource mobilization (DRM) has assumed increasing significance as a form of financing for sustainable development and economic growth in Africa. This chapter explores the present and future roles of international law concerning the regulation of this form of financing for sustainable development and economic growth in Africa, as well as the main obstacles and challenges of mobilising DRM in African developing and less developed countries. While there is a wide array of questions and issues related to this form of financing for development that international conferences and summits, in particular the Monterrey Consensus on Financing for Development and the Addis Ababa Agenda for Action, have addressed in various forms and with different emphasis and results, the chapter focuses exclusively on some substantial issues, such as the use of DRM for the financing of the new Sustainable Development Goals and the relationship between DRM and poverty alleviation actions and strategies.


2017 ◽  
Vol 18 (1) ◽  
pp. 132-143 ◽  
Author(s):  
Ibrahim Dolapo Raheem

This study examined the role of financial development in the Feldstein–Horioka (FH) puzzle for 31 sub-Saharan African (SSA) countries for the period 1999–2011. Unlike previous studies that used traditional measures of finance (‘more finance’), we advocated for superior measures of financial development (‘better finance’). The baseline regression shows that ‘more finance’ increases the FH estimate, while ‘better finance’ serves as drag to the same retention coefficients. The reverse of these results was obtained when the baseline regression was extended to account for the interaction between savings and proxies for finance. The results obtained show a considerable improvement in the saving retention coefficient when ‘better finance’ was used as against ‘more finance’. This concretely reinforces the superior role of ‘better finance’ in mobilizing, distributing and utilizing savings for investment within these economies. Based on these findings, domestic resource mobilization can be a veritable vehicle for plugging the substantial investment gap in these SSA economies. However, such policy thrust must be complemented by far-reaching financial reforms.


2021 ◽  
Vol 27 (4) ◽  
pp. 504-533

This study investigates the nexus between domestic resource mobilization using aggregated and disaggregated taxes, and human capital accumulation as measured by the index of human capital and total factor productivity. The study explores panel Autoregressive Distributed Lag. We further explore the linear and nonlinear effects of taxes on human capital accumulation. The results from the scatterplots show that taxes at aggregate and disaggregated levels positively correlated with the two measures of human capital. On the linear analysis, the impact of aggregated and disaggregated taxes is largely negative under the index of human capital but largely positive under the second measure in the short-run. However, the long-run results indicate that aggregate and disaggregated taxes significantly amplify human capital accumulation. On nonlinearity, there is no presence of human capital laffer curve (HCLC) in the short-run under the two measures of human capital. However, there is presence of HCLC in the long-run. The net effects results show that some taxes (such as indirect taxes, taxes on goods and services) are distortionary in improving the level of human capital development while some taxes (such as total tax, direct tax, taxes on income, profit, and gains) can distort human capital development in the SSA region.


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