Tax Revenue in Sub-Saharan Africa : Effects of Economic Policies and Corruption

Author/Editor:

Dhaneshwar Ghura

Publication Date:

September 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

An analysis of data for 39 sub-Saharan African countries during 1985–96 indicates that the variations in tax revenue-GDP ratios within this group are influenced by economic policies and the level of corruption. Namely, these ratios rise with declining inflation, implementation of structural reforms, rising human capital (a proxy for the provision of public services by the government), and declining corruption. The paper confirms that the tax revenue ratio rises with income, and that elements of a country’s tax base (such as the share of agriculture in GDP and the degree of openness) influence tax revenue.

Series:

Working Paper No. 98/135

Subject:

English

Publication Date:

September 1, 1998

ISBN/ISSN:

9781451855685/1018-5941

Stock No:

WPIEA1351998

Format:

Paper

Pages:

25

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