Tax Effort in Sub-Saharan Africa

IMF Working Papers, September 1, 1997

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Tax Effort in Sub-Saharan Africa

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Bibliographic details

• Authors: Janet Gale Stotsky, Asegedech WoldeMariam
• Published: September 1, 1997
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451852943.001

Overview

• Many sub-Saharan African countries face difficulty in raising tax revenue for public purposes.
• This study uses panel data on 43 sub-Saharan African countries during 1990-95 to measure the determinants of the tax share in GDP and to construct a measure of tax effort.
• The analysis suggests that the countries with a relatively high tax share tend to have a relatively high index of tax effort, although these results are not uniform across the countries.
• The results can be used to provide guidance on to the proper mix of fiscal policy in the event of budgetary imbalance.

Methodology

• Data: panel data on 43 sub-Saharan African countries during 1990-95.
• Objective: measure determinants of the tax share in GDP and construct a measure of tax effort.

Key Findings

• Countries with a relatively high tax share tend to have a relatively high index of tax effort.
• The relationship between tax share and tax effort is not uniform across countries.

Policy Implications

• The study’s results can be used to provide guidance on the proper mix of fiscal policy in the event of budgetary imbalance.

Subject Areas and Keywords

• Subject: Exports, Mining sector, Personal income, Revenue administration, Revenue sharing
• Keywords: country, share, tax share, WP

Content in this bundle

• Tax Effort in Sub-Saharan Africa - WP/97/107
  • Tax Effort in Sub-Saharan Africa - WP/97/107 (Markdown version)
  • Tax Effort in Sub-Saharan Africa - WP/97/107 (PDF)