-political instability once fiscal policy and remittances have been accounted for. It focuses on import prices to reflect the vulnerability … and income per capita. On the other hand, while remittances seem to dampen the adverse effect of import food price shocks …

We study the effect of inflowing remittances - a major source of capital for many countries - on tax-revenues and tax …-policy. Instrumenting remittances with changes in the oil-price interacted with a country's distance to oil-producing countries, we find … that remittances have a large positive effect on VAT revenues but no effect on income-tax revenues. This suggests that …